Ola Cabs CEO Hemant Bakshi Resigns Amid Company Plans To Lay Off 10% Employees: Report

Ola layoffs: Hemant Bakshi had taken on the role in January. As part of a potential restructuring effort, the company is considering laying off over 10 per cent of its workforce

Ola cabs has decided to shut operations in the UK, Australia, and New Zealand, nearly six years after venturing into international markets. ( Image Source :Getty )

Hemant Bakshi, CEO of Ola Cabs, has resigned from his position just four months after joining the company. His resignation is effective immediately, according to a report by Moneycontrol. Bakshi had taken on the role in January. As part of a potential restructuring effort, the company is considering laying off over 10 per cent of its workforce.

"With this restructuring, certain roles within the organisation will be rendered redundant and could impact as much as 10 per cent of the workforce," sources told Moneycontrol.

This development occurs as the company prepares to submit draft listing documents within the next three months, aligning with Ola Electric's recent filing of draft papers for an initial public offering (IPO) with the Securities and Exchange Board of India (Sebi) in December. Ola is currently awaiting approval from the regulatory body.

Ola Cabs, founded in 2010, has received early support from major investors such as SoftBank and Tiger Global. In recent months, the company has closed international operations in several countries due to increased competition and the firm's focus on the Indian market amid government electrification targets. Backed by SoftBank, Ola has decided to shut operations in the UK, Australia, and New Zealand, nearly six years after venturing into international markets. The move comes as the company aims to concentrate on its domestic business in preparation for IPO, as stated by an Ola spokesperson, as quoted by TechCrunch.

In fiscal year 2023, Ola's Mobility division reported revenue of Rs 2,135 crore, a 58 per cent increase, and achieved a positive EBITDA of Rs 250 crore, marking a turnaround from an EBITDA loss of Rs 66 crore in fiscal year 2022.

ANI Technologies, the parent company of Ola Fleet, Ola Financial Services, and Ola Stores, recorded consolidated revenue of Rs 2,799 crore, reflecting a 42 per cent year-over-year increase despite a decrease in revenue from Ola Fleet and Ola Financial Services.