Ola may cut down at least 500 workers in software teams

Ola, a ride-sharing platform based in India, has started trimming down its various software verticals, which may result in the dismissal of at least 500 employees, CNBC-TV18 reported.

The development comes as the Ola Electric scooter business, which was launched in December last year, is seeing declining sales. Ola confirmed to CNBC-TV18 that 200 employees were likely to be impacted, but unnamed sources said that the figure will be higher.

However, the firm said it was also planning to increase its number of engineers from 2,000 to 5,000 over the next 18 months as it increases its focus on “non-software engineering domains” of its electric vehicle arm.

Previously, Ola laid off nearly 2,000 employees due to the closure of several ventures, including used-car vertical Ola Cars and quick commerce unit Ola Dash.

As it faced complaints about software, battery performance, and service issues, Ola’s scooter sales declined from 12,691 in April to 3,351 in August, the lowest figure it reported in the last six months. In addition to cutting down on resources, the company is also looking to make changes to its online direct selling strategy.

See also: Tracking layoffs across Asia’s startup ecosystem (Updated)