Ola may dismiss 500 staff to focus on electric unit

Ola, an India-based ride-sharing platform, may lay off 500 employees to cut costs amid the poor macroeconomic landscape, The Economic Times reported. The company is reportedly focusing its cash on its electric scooter manufacturing arm, Ola Electric.

With almost 1,100 staff members in its core business, Ola would be dismissing 45% of its workforce. The company wants to form leaner and consolidated teams to optimize its profitability, a source told The Economic Times.

This pivot has also led the company to close down several ventures, such as its used-car arm Ola Cars, quick-commerce branch Ola Dash, and food-related businesses Ola Foods, Ola Cafe, and Foodpanda in the country.

The cab aggregator said that Ola Cars’ technologies and capabilities will be used to support Ola Electric’s operations.

The company will also put a pause on its global expansion and IPO plans.

The Indian government is probing into Ola Electric’s operations and has asked the firm to explain why one of its electric scooters caught fire in the Indian city of Pune in March this year.

Ola was founded in 2010 by Bhavish Aggarwal and Ankit Bhati‎, with operations in India, Australia, New Zealand, and the UK.

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