Last Updated:
Ola Electric is initiating a restructuring exercise that might affect over 500 employees across various roles in the company, says a report.
Ola Electric is undertaking the layoffs to improve its margins in its efforts to attain profitability.
Ola Electric, owned by Bhavish Aggarwal, is initiating a restructuring exercise that might affect over 500 employees across various roles in the company, according to a Moneycontrol report citing sources familiar with the matter.
The electric vehicle company is undertaking layoffs to improve its margins in its efforts to attain profitability.
Ola Electric also undertook two restructuring exercises in September 2022 and July 2022.
In September 2022, the company announced new hiring to centralise and unify operations across verticals. In July 2022, Ola Electric laid off around 1,000 employees when it shut down three of its businesses — Used Cars, Cloud Kitchen and Grocery delivery, to focus on the EV business.
Ola Electric had 4,011 on-roll employees as of March 2024, according to its latest IPO document from August.
The SoftBank-backed firm has yet to turn a profit due to high costs and reductions in EV subsidies. Using in-house batteries for its scooters will be key to bringing down costs and becoming profitable, Ola has said.
Ola Electric is navigating regulatory hurdles following its stellar stock market debut in August, while its dominance of India’s growing electric two-wheeler market is fading.
Several consumer complaints have led India’s top product certification agency to probe Ola’s deficiency in service standards and product issues. Rivals launching models priced closer to Ola’s have narrowed its lead. Ola Electric reported a narrower loss in the July-September quarter as sales jumped.
The company’s shares ended 3% lower at its lowest-ever closing price of Rs 67.23.
