Ola Electric eyeing up to 500 job cuts before IPO: report

Photo credit: Ola Electric

India-based Ola Electric is planning to lay off 400 to 500 employees before its upcoming IPO this year, sources with knowledge of the move told Economic Times.

Although fresh recruits might fill some vacancies, the e-scooter maker primarily aims to decrease its total workforce and better manage its operating costs.

“We do not know the layoff numbers your sources are speculating,” an Ola Electric spokesperson told ET. However, the company did not comment directly on the reported job cuts.

In April, Ola Cabs, the ride-hailing business of Ola Group, axed nearly 200 employees.

According to Ola Electric’s draft IPO filing, it had a headcount of 3,733 in October 2023, with an attrition rate of 47.48% for financial year 2023.

Ola Electric reported a net loss of US$177 million in FY 2023, while, its parent firm ANI Technologies logged a year-on-year loss of US$130 million during the same period.

Ola Electric is awaiting regulatory approval in India to go public, intending to raise US$662 million by issuing fresh shares. As it prepares to list the company exited the UK, Australia, and New Zealand to hone in on its home market.

In May, Ola sold more than 37,000 units of e-scooters in India, securing 50% of the market share.

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