Ola has replaced its CEO Hemant Bakshi and is streamlining operations by cutting about 180 jobs to improve profitability, a source familiar with the matter told TechCrunch. Founder Bhavish Aggarwal stated in an email to employees that this move is part of a restructuring exercise to prepare for the company’s next growth phase.
The Indian ride-hailing startup, backed by investors like SoftBank and Tiger Global, recently shut down operations in the U.K., Australia, and New Zealand. Bakshi, a former HUL executive, was appointed as CEO in January.
Ola, positioning itself for a potential IPO later this year, saw its spin-off startup Ola Electric go public recently. Aggarwal, who founded both startups, also started the AI firm Krutrim, which became a unicorn in January. Ola Electric is aiming to raise over $650 million in its IPO.
The full text of Aggarwal’s email to staff is provided below.
Dear All,
As part of our vision to serve 1 Billion Indians and drive sustainable growth, we are restructuring to improve profitability and prepare for future growth. We have invested in AI & Technology to gain cost advantages and will continue to focus on these areas.
Some roles in the company will become redundant as a result of these changes. We are committed to supporting those affected during this transition period.
Hemant will step down as CEO to explore new opportunities. Thanks to him for his contributions and we wish him the best. We have a strong leadership team at Ola Consumer to drive technology-led growth.
We value transparency and open communication. Our HR team is available for any queries or concerns.
Thank you for your dedication to Ola.
Best,
Bhavish
