SoftBank-backed Ola plans to get rid of about 200 jobs throughout its engineering groups over the subsequent few days, on observe to shrink its workforce by over 1,200 this 12 months, because the ride-hailing large streamlines its operations to enhance funds.
The corporate has kickstarted the brand new wave of layoffs, which impacts the engineering groups at its meals and ride-hailing companies. An Ola spokesperson stated the layoff impacts fewer than 200 jobs, accounting for 10% of the corporate’s engineering workforce.
The Bengaluru-headquartered startup, valued at over $7 billion and backed by Temasek and Warburg Pincus, has experimented with numerous companies in recent times, together with meals supply and fast commerce, however has shifted most of its focus to Ola Electrical, technically an independent startup that produces electrical scooters.
Ola stated in a press release that it at the moment employs about 2,000 people and goals to extend the engineering expertise pool to five,000 over the subsequent 18 months.
“In gentle of those efforts, the corporate is centralizing operations and is endeavor a restructuring train to attenuate redundancy and construct a robust lateral construction that strengthens related roles and features,” a startup spokesperson stated in a press release.
The startup, whose founder has barely spoken in regards to the marquee ride-hailing service in a 12 months and thru the agency bought his brother’s fintech startup Avail Finance in March, can also be struggling to develop gross sales of its electrical autos, in keeping with authorities information.
Monday’s layoff provides to a rising listing of job cuts throughout the Indian startup ecosystem this 12 months, the place greater than 10,000 roles have been eradicated this 12 months partly due to the market downturn.
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