Ola Will Fire 1000 More Employees For IPO Launch; 20% Employees Can Be Fired?
Ola is planning rigorously for their IPO (Initial Public Offer) launch in the next two years.
And as part of the preparation, it seems that Ola is fire 20% of its3 employees in the next few months.
Ola has denied this development, but have admitted that 4-5% of the employees can face terminations.
Checkout the details..
Ola Will Fire 1000 More Employees For IPO
As part of their IPO preparation, Ola is looking to trim its workforce, and reduce headcount by upto 20%.
As per an exclusive report by Entrackr, Ola has already fired 500 employees, and 1000 more will follow in the next few months.
Earlier, based on Entrackr investigation, we had reported that around 350 employees will be fired, as part of the IPO preparation.
But it seems that the numbers are higher than that.
Ola had 6000 employees last year, which reduced to 5000 because of some high profile exits, and attrition, along with minor job cuts.
If the news about 20% layoffs is true then 1000 employees will face terminations in the next 6 months.
Which Employees Are Getting Fired?
Managers and mid-level executives are the ones who are in the firing line, literally. As per a source, almost half of the 1000 employees which will be asked to leave belong to mid-level category, and entry-level executives having experience of more than 5 years.
The source said, “Almost half of the 1,000 include executive-level employees including senior managers and the other half is expected to be employees at mid-level functions.”
As per the source, in the last three weeks, 500 employees have already been fired.
Ola Denies This News
Ola has denied that 1000 employees or 20% of the workforce is being terminated.
But at the same time, they have admitted that 4-5% of their 4500 strong workforce will be asked to leave, as part of corporate restructuring.
In a statement, Ola said, “With a view to become more nimble and have a sharper focus on growth and profitability, we are redesigning the organisation to build a structure that strengthens and leverages our local and global scale and enables faster decision making across all of Ola’s group companies,”
As per some analysts, the terminations at Ola is happening due to WeWork fiasco: Now investors are not believing the revenue numbers, and are more or less focused on actual profits.
We will keep you updated, as more details come in.