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There are reports of layoffs in many companies amid fears of recession around the world. In India too, the news of layoffs in companies like Byju’s, Unacademy has gone on in the media in the past. There are reports of layoffs in another big domestic company. This company is Ola. Reportedly, taxi service provider Ola is planning to lay off 400 to 500 employees. According to information received from sources, Ola is facing delays in its IPO plans and challenges regarding funding. In such a situation, the company can take the step of laying off employees in an attempt to reduce its cost.
The fear of layoffs in Ola has also increased because the company had recently closed the company’s quick commerce business Ola Dash. At the same time, in order to focus on its electric vehicles segment, the company has also decided to close its second hand car business Ola Cars. On behalf of the company, it has been said that the purpose of closing these companies is to accelerate the journey of the company’s electric segment.
According to a source close to the company, key managers have been asked to prepare a list of people in their team who can be laid off. There are also reports that Ola has postponed its decision to invest outside the country in foreign markets like UK, Australia, and New Zealand for the time being.
Other experts associated with the company say that the company has almost stopped its expenditure in the international markets. In countries like the UK and New Zealand, the company’s market share percentage has now come down to single digits.
Let us tell you that based on the estimates, around 1000 to 1100 employees work in Ola’s core mobility business. Sources reveal that they generate revenue of around 100 to 150 crores every month. In which the company has a profit of about 40 to 50 crores. In such a situation, experts believe that closing expensive business like Ola Dashen will help the company in preparing for its IPO.
The decision to cut employees will increase the operating margin of the company, so they will be able to show their core business in profit. However, there has been no comment from the company on the news of layoffs at Ola. It has been said by the company that its focus will remain on the mobility industry, whether it is ride-hailing, auto retail, financial services or electric vehicles business.