Ola Electric is reportedly preparing to lay off 400-500 employees in the upcoming weeks. According to a recent newspaper report, this move is aimed at reducing operating expenses in preparation for the company’s proposed Initial Public Offering (IPO).
The report also suggests that the company might replace the affected employees with new hires at lower salaries, though the overall workforce is expected to decline.
Objective Behind the Layoffs
Founder Bhavish Aggarwal is focused on making Ola Electric profitable before the proposed IPO.
The specific departments or verticals that will be affected by the layoffs have not been disclosed yet, but it is anticipated that multiple areas within the company may see reductions.
Strategy to Reduce Costs
Ola Electric’s strategy involves potentially firing older employees and recruiting new ones at lower salaries. This approach is intended to cut costs by replacing higher-paid employees with lower-paid ones.
Additionally, sources indicate that the company plans to hire fewer new employees than the number laid off, ensuring a net reduction in the overall headcount of Ola Electric.
Impact on Workforce and Future Plans
The layoffs and subsequent recruitment strategy reflect Ola Electric’s efforts to streamline operations and enhance profitability as it gears up for an IPO.
While this move might help in cost reduction, it also indicates a significant shift in the company’s workforce dynamics, affecting many employees across various verticals.
