SoftBank-backed ride-hailing major Ola is set to slash about 1,000 jobs as it looks to ramp up hiring for its electric mobility business, Ola Electric, The Economic Times reported on Friday.
While the company had initially planned to lay off about 400-500 employees, the final figure could go up to 1,000.
According to the report, the company has been intentionally delaying the appraisal process, and asking some employees to voluntarily resign. The company is terming it as a restructuring exercise, as part of which it wants to direct more resources towards its electric cars business, the report said citing a source.
Ola is planning to hire about 800 people for electric cars alone. It would also hire people for its upcoming battery cell research and development facility in Bengaluru, which is expected to become operational in August. The facility aims to employ over 500 engineers and PhD holders.
The company has also shut down its quick commerce arm Ola Dash and used-car sales business Ola Cars in just eight months of its launch to sharpen focus on the electric vehicles business.
In a recent statement, the company said, “Ola has reassessed its priorities and decided to shut down Ola Dash – its quick commerce business. Ola will also be reorienting its Ola Cars business to focus more on strengthening the go-to-market strategy for Ola Electric. The infrastructure, technology and capabilities will now be repurposed towards growing Ola Electric’s sales and service network.”
Ola Electric has been fast expanding and garnering investor interest since past few months. The company raised $200 million funding Tekne Private Ventures, Alpine Opportunity Fund, Edelweiss and others at a valuation of $5 billion in January this year.
The company, however, has also been facing criticism from its consumers for the quality of its scooters in the wake of a fire incident that happened in Pune in March this year.