Ola Undergoes Restructuring, Lets Go of CEO and 180 Employees
Profitability and Growth Drive Changes
In a surprising turn of events, Indian ride-hailing giant Ola has parted ways with its chief executive, Hemant Bakshi, a mere four months after his appointment. Additionally, the company is trimming its workforce by approximately 180 employees, as revealed by an insider source to The Zero Byte.
Bhavish Aggarwal, Ola’s founder and chairman, communicated the decision to employees via an email on Monday, emphasizing the company’s focus on “improving profitability” as the driving force behind the restructuring exercise. Aggarwal stated that the changes are necessary to prepare Ola for its “next phase of growth.”
Ola’s Global Retreat and Leadership Changes
The restructuring comes on the heels of Ola’s recent withdrawal from international markets, including the U.K., Australia, and New Zealand earlier this month. Hemant Bakshi, a seasoned executive from FMCG giant Hindustan Unilever, had only been at the helm of Ola since January this year.
IPO Plans and Aggarwal’s Ventures
Ola, backed by prominent investors such as SoftBank and Tiger Global, is gearing up for an IPO later this year, following the planned public debut of its spin-off, Ola Electric. Both startups were founded by Bhavish Aggarwal, who has also recently launched an AI startup called Krutrim, which achieved unicorn status in January. Ola Electric is aiming to raise over $650 million through its IPO, as per the company’s filings.
Aggarwal’s Email to Employees
In his email to the staff, Aggarwal outlined the company’s vision and the rationale behind the restructuring:
In line with our vision to serve 1 Billion Indians, and our commitment to drive sustainable growth and enhance efficiency across the organization, we are undergoing a restructuring exercise aimed at improving profitability and preparing ourselves for the next phase of growth.
He also highlighted the company’s investments in AI and technology, which have led to significant cost advantages. However, the restructuring will result in certain roles becoming redundant, and the company has pledged to support those affected during the transition period.
Aggarwal expressed confidence in Ola’s strong leadership team and their ability to collaborate closely with him to drive technology-led growth. The company remains committed to transparency and open communication throughout the process, with the HR team available to address any concerns or queries from employees.
6 Comments
Wow, talk about cutting deep to chase that profit margin!
Profit over people, Ola’s motto perhaps?
Job cuts for profit? Classic move, Ola.
Ouch, Ola’s trimming the fat for a fatter wallet, huh?
Looks like Ola’s playing the ruthless profit game, cutting jobs to count more coins!
So Ola’s idea of progress is showing 180 folks the door? Talk about harsh measures for profit’s sake!