Updated April 30th, 2024 at 12:01 IST

Ola Cabs cuts 10% of workforce, CEO Hemant Bakshi departs after 4 months: Report

Ola Cabs trims 10% of its workforce, CEO Hemant Bakshi let go 4 months after appointment

Reported by: Business Desk
Ola Cabs | Image:Republic
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Ola layoffs: Bhavish Aggarwal-led Ola Cabs has laid off almost 10 per cent of its workforce, amounting to around 200 employees, Inc42 reported, quoting sources familiar with the matter. 

Notably, Ola has also let go of its CEO, Hemant Bakshi, merely four months after appointing him to the post, according to TechCrunch. Bakshi, who previously held a senior position at FMCG major Unilever, was appointed as Ola's chief executive in January this year.

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According to reports, Bhavish Aggarwal, founder and chairman of Ola Cabs, informed employees via an email that the restructuring aims to enhance the startup's profitability and prepare for its next phase of growth.

The email highlighted the company's investments in artificial intelligence (AI) and technology, which have yielded significant cost advantages.

Ola Cabs has not yet responded to Republic Business' email query regarding the layoffs.

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Ongoing IPO plans

The restructuring aligns with Ola's plans for an initial public offering (IPO), which the startup has reportedly resumed preparations for. The company is said to be aiming for a $500 million IPO, with discussions underway with investment banks including Bank of America, Goldman Sachs, Citi, Kotak, and Axis.

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In a bid to streamline operations and concentrate efforts on its primary market, Ola recently ceased operations in the UK, New Zealand, and Australia.

Ola Cabs has reported improvements in its financial performance. The company's consolidated net loss nearly halved to Rs 772.2 crore in FY23, while operating revenue saw a 42 per cent increase to Rs 2,799.3 crore.

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Ola Cabs recently announced that its India mobility business achieved segment-adjusted EBITDA of approximately Rs 250 crore in FY23, marking a significant turnaround from an EBITDA loss of Rs 66 crore in the previous year.

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Published April 30th, 2024 at 12:01 IST