A long ‘funding winter’ has prompted several startups, including unicorns to consider cost cutting and layoffs and Ola is the latest one to join the list.
Ola looks to significantly bring down its costs, which may also result in 400-500 employees being laid off, amid a delay in listing plans and a tough funding environment, Moneycontrol has reported.
"Key managers were asked to draw up a list of people from their respective teams last week who can be let go," it quoted a source familiar with the development as saying.
As per the report, Ola has also hit the brakes on investments in overseas markets where it is present, such as the UK, Australia, and New Zealand.
"They have stopped spending in international markets. They have a single-digit market share now in countries like the UK and New Zealand," it quoted another person familiar with the matter.
"Shedding cash burn heavy businesses like Dash and cutting employee costs will give them more operational runway and also show a profitable business if they want to IPO," the person added.
Ola has around 1,000-1,100 employees in the core mobility business, as per estimates.
The move to undertake layoffs also comes days after Ola decided to shut down Ola Dash, its quick commerce business, and also recast its cars business.