Ola has fired Chief Executive Officer Hemant Bakshi just four months after he was appointed to the post and will further cut about 180 jobs, people familiar with the matter told TechCrunch.
The Indian ride-hailing startup's move is aimed at “improving profitability,” company founder and chairman Bhavish Agarwal told employees in a Monday email seen by TechCrunch.
The company is undergoing a “restructuring exercise” to prepare for its “next phase of growth,” Agarwal, pictured above, wrote in an email.
The move comes after Ola suspended operations in the UK, Australia and New Zealand earlier this month. Bakshi, a former executive at FMCG giant Hindustan Unilever, was appointed Ola's chief executive officer in January this year.
Ola, which competes with Uber in India and counts SoftBank and Tiger Global among its investors, is aiming for an IPO later this year, following the planned public offering of Ola Electric, a startup spun out of Ola. Both startups were founded by Agarwal, who also founded Kultrim, an AI startup that became a unicorn in January. Ola Electric aims to raise more than $650 million in its IPO, according to company filings.
The full text of Mr. Agarwal's email to staff on Monday follows:
Dear everyone,
In line with our vision to serve 1 billion Indians and our commitment to drive sustainable growth and improve efficiency across the organization, we are driving profitability and advancing our next phase of growth. We are proceeding with organizational restructuring aimed at preparing for the future.
We have made significant investments in AI and technology, which has given us significant cost benefits. We will continue to focus on these areas to ensure we are building cutting-edge products and services across our business lines.
These changes eliminate the need for certain roles within the company. This decision has not been taken lightly and we are committed to supporting those affected during this transition period.
Mr. Hemant plans to step down as CEO to pursue opportunities outside the company. We would like to thank Hemant for his contribution and wish him all the best in his future endeavors.
I am extremely confident in the strong leadership team we have built over the past few years at Ola Consumer. They bring a lot of experience and expertise to their roles. They will work closely with me to drive technology-driven growth.
We are committed to transparency and open communication throughout this process. Our human resources team is available to assist you with any questions or concerns you may have.
Thank you for your unwavering dedication and contribution to Ola.
The best,
Babish