Ola has let go of CEO Hemant Bakshi just four months after he was appointed to the position, and is cutting about 180 additional jobs, a source familiar with the matter told TechCrunch.
The move by the Indian startup is aimed at “improving profitability,” its founder and chairman Bhavish Aggarwal told employees in an email Monday seen by TechCrunch.
The company is undergoing a “restructuring exercise” to prepare for its “next phase of growth,” Aggarwal, pictured above, wrote in the email.
The move comes after Ola stopped its operations in the UK, Australia and New Zealand earlier this month. Bakshi, a former executive of FMCG giant Hindustan Unilever, was appointed Ola’s chief executive in January this year.
Ola, which competes with Uber in India and counts SoftBank and Tiger Global among its backers, is looking to do an IPO later this year after the planned public debut of Ola Electric, a startup spun out of Ola. Both startups were founded by Aggarwal, who has since also founded AI startup Krutrim, which became a unicorn in January. Ola Electric is seeking to raise more than $650 million in its IPO, according to documents filed by the company.
Here is Aggarwal’s Monday email to the entire staff:
Dear,
In line with our vision to serve 1 billion Indians and our commitment to drive sustainable growth and enhance efficiency across the organization, we are undergoing a restructuring process to improve profitability and prepare for our next phase of growth.
We’ve made significant investments in AI and technology areas that have led to significant cost advantages, and we’ll continue to focus on these areas to ensure we’re building cutting-edge products and services across all lines of our business.
These changes will result in certain roles within the company becoming redundant. This decision was not taken lightly and we are committed to supporting those affected during this transition period.
Hemant will step down from his role as CEO to pursue opportunities outside the company. We thank Hemant for his contribution and wish him the best in his future endeavours.
I am very confident in the strong leadership team we have built over the last few years at Ola Consumer, who bring a wealth of experience and expertise to their respective roles. They will work closely with me to drive technology-driven growth.
We are committed to transparency and open communication throughout this process. Our HR team will be available to answer any questions or concerns you may have.
Thank you for your unwavering loyalty and commitment to Ola.
Better,
Bavis
