MUMBAI:
Ola Cabs
is laying off 10% or end to 200 workers as half of its
restructuring
exercise earlier than a deliberate preliminary public providing (IPO), sources mentioned. The firm targets to file its draft
IPO
papers with markets regulator Securities and Switch Board of India (SEBI) in three months and derive listed in the bourses later this twelve months. The make stronger groups own largely been impacted by the lunge which furthermore comes amid the firm’s elevated focal level on deployment of
synthetic intelligence
(AI) in its operations while the core technology and product groups are understood to own no longer been tormented by the downsizing job.
In a letter to workers which used to be reviewed by TOI, founder
Bhavish Aggarwal
mentioned that the restructuring exercise is aimed at “bettering profitability” and making ready the firm for the “subsequent piece of yell.”
In a separate pattern, the Bengaluru-basically based company’s CEO
Hemant Bakshi
quit from his home interior three months of becoming a member of the firm. Ola Cabs declined to comment. Aggarwal mentioned that Bakshi is leaving to pursue alternatives outside the firm.
The job cuts come amid the firm’s makes an strive to kind a leaner team constructing and grow sustainably. The company claims to own already posted operational earnings of Rs 250 crore on a standalone basis in FY23 against losses of Rs 66 crore in the twelve months in the past period. “Profitability is a lucrative proposition for the general public markets and the company wants to extra kind on it,” a offer responsive to the firm’s thinking mentioned. Aggarwal mentioned that the firm has made huge investments in areas of AI and technology which has resulted in critical payment advantages. “….we are succesful of proceed to focal level on these areas to make sure that we kind innovative merchandise and services and products all the absolute most practical blueprint through our industry verticals. These changes will consequence in obvious roles interior the firm turning into redundant,” Aggarwal mentioned.
Subsidiary
Ola Electrical
has already filed draft IPO papers with SEBI and targets to raise Rs 5,500 crore through issuance of fresh shares.
