Ola Electric

Prepares for IPO with Strategic Layoffs to Cut Costs

Ola Electric plans to lay off 400-500 employees to manage expenses ahead of its IPO, with the final number still being determined by company leadership, according to ET.

Insiders say some laid-off employees might be replaced with lower-cost hires, though overall staff numbers will drop. Several teams have already determined the cuts.

Efforts to Cut Costs

This follows April's reduction when Ola Cabs cut 200 jobs, and CEO Hemant Bakshi and CFO Kartik Gupta left. These steps are part of a broader strategy to streamline and reduce overheads.

Leadership Changes

In its draft IPO filings submitted in December, Ola Electric reported a workforce of 3,733 as of October 2023, with an attrition rate of 47.48% for the fiscal year 2022-23 (FY23).

Staff Turnover

In Q1 FY24, Ola Electric reported a net loss of ₹267 crore on revenue of ₹1,243 crore. For FY23, it had a net loss of ₹1,472 crore on revenue of ₹2,631 crore, highlighting financial challenges ahead of its IPO.

Financial Results