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

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 matter. 

Notably, Ola has also let go of its CEO, Hemant Bakshi, merely four months after appointing him to 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.

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

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

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

Ongoing IPO plans

restructuring aligns with Ola's plans for an initial public offering (IPO), which startup has reportedly resumed preparations for. 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.

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

Ola Cabs has reported improvements in its financial performance. 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.

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