After shutting down TaxiForSure and laying off over 1000 employees last week, the Bengaluru-based cab aggregator, Ola has now reportedly laid off around 250 people on performance grounds and eliminating contract roles due to a business realignment.
The move comes at a time when companies are increasingly focussing on rationalising costs, given the slowdown in funding.
When asked about the development, the company’s spokesperson said, “An annual attrition of 3-4% is a natural churn that is witnessed in the current industry scenario. This includes performance-driven exits, contract roles as well as a few surfacing from constant business realignment. These have been well-thought-through organisational decisions, keeping in mind the best interests of employees and business efficiencies.”
When asked, the spokesperson declined to state what the business realignment was.
This step seems to be a consolidation strategy in a bid to strengthen its core business against rival Uber. Earlier, Ola had also withdrawn from the grocery and food delivery businesses as well.
In last two years, Ola has witnessed a lot of structural changes and the exits of some prominent people. The exits included Head of Cabs Category Management, Pradeep Dodle; Associate Vice President of Products, Harsha Kumar; and Payments Business Head, Rushil Goel.
The cab-hailing service has faced many battles this year: competition, surge pricing, licence issues, and more. Not only this, it suffered threats from the Mumbai taxi and auto rickshaw unions to get banned. Earlier this week, two Ola drivers allegedly gang raped a minor and murdered her which raised questions of passengers’ safety while traveling via these platforms.
This development was first reported in ET.
