Ola has slashed its workforce by more than half, reducing employee strength from 886 in April to 376 by August 2024. The move comes as the ride-hailing company faces growing competition and works to improve profitability.
Ola is also facing intensified market pressure from rivals Rapido and Uber. With Rapido expanding rapidly into the four-wheeler segment, Ola’s market share has declined from around 43 per cent last year to between 25 and 30 per cent, while Uber continues to hold approximately 45 per cent of the market.
The layoffs, though significant, reflect a broader trend in India’s mobility sector, where companies are recalibrating to balance growth ambitions with financial discipline. Sources suggest that Ola is prioritising critical roles in operations, technology and business strategy while reducing redundancies in non-core functions.
To navigate the increasingly competitive landscape, Ola is accelerating automation and operational efficiency measures, even after a slight revenue dip in FY24. The company’s restructuring reflects a strategic push to streamline operations and sustain growth amid shifting dynamics in the ride-hailing sector, particularly in smaller cities where competition has intensified.
Despite the challenges, Ola continues to bet on technology and operational efficiency as levers for growth. The company is also exploring new avenues, such as subscription-based models and fleet partnerships, to diversify revenue streams and strengthen its position against rising competition.
Source – https://www.hrkatha.com/news/ola-cuts-workforce-by-60-amid-intensifying-competition/