look news india
Ola Electric is preparing to lay off its employees next week. The number of these employees could be around 400 to 500, although this number may change after the final list is released by the company. Information about how many people the company will lay off will be available only after the final decision is taken by the company.
Actually, Ola Electric wants to control its operating costs before the IPO, so it is considering options like layoffs. While drafting the paper for the IPO last December, the company had said that it had a total of 3,733 employees in the month of October 2023 and at that time the company's employee attrition rate was 47.48 percent.
There will be new recruitment
According to a report by The Economic Times, the company may make new recruitments in place of the laid-off people. However, the number of new people will be less than the number of people being fired and the company will also pay less salary to these people. Also, experts are saying that Ola Electric has already planned for this layoff process.
Ola company's CEO Hemant Bakshi has also resigned from his post, along with him the company's CFO Kartik Gupta has also resigned from his post. In the month of April too, the company had fired about 200 people. However, at that time this layoff was from Ola Cab.
The company is running at a loss
Ola company has been running in losses continuously for the last few days. According to the data of the first quarter of the financial year 2024 (FY24), Ola Electric has a loss of Rs 267 crore and its operating revenue is Rs 1,243 crore. The company also suffered a loss in the financial year 2023 (FY23). During this time also the company suffered a loss of Rs 1472 crore. The operating revenue of the company in that financial year was Rs 2,631 crore.
