CNBC first reported Monday that several of the employees laid off as part of the “restructuring exercise” worked on the Ola app.
The company run by Bhavish Aggarwal had nearly 1,100 employees in its core transit business.
Although Ola has not commented on the layoff of 500 employees from its software verticals, it said in a statement that
“The company currently has approximately 2,000 engineers and aims to increase its engineering talent pool to 5,000 over the next 18 months. In light of these efforts, the company is centralizing operations and undertaking a restructuring exercise to minimize redundancies and build a strong lateral structure that reinforces relevant roles and functions,” the company said.
Past restructuring exercises have impacted employees in the product, marketing, sales, sourcing, technology, business and operations verticals of the company, affecting more than 1,000 employees.
However, according to sources, these layoffs affected fewer than 500 employees, not 1,000, and “were the result of restructuring in the Cars and Dash businesses”.
The ride-sharing major recently shut down its used-vehicle business
Recently, Ola Electric’s advanced battery engineering manager, Ashok Saraswat, moved on.
Saraswat, who joined SoftBank-backed Ola last year, is said to have joined a company that is getting into the battery business.
More than half a dozen senior executives have left Ola Electric in recent months, while more than 30 senior executives have left Ola in the past two years.
Ola Electric’s sales are declining and it sold 3,421 electric two-wheelers in August, down from the 3,862 units the company sold in July, indicating it has yet to get its overall strategy back on track.
A recent report found that only 1% of residential consumers plan to buy an electric scooter in the next six months due to safety and performance issues, as the government investigates several electric two-wheeler fires.
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