It hasn’t been long since Ola Electric laid off around 500 employees in November 2024. Now, the electric vehicle manufacturer, led by Bhavish Aggarwal, is again reducing its workforce to cut losses.
These job cuts will affect various departments, including the charging infrastructure division, fulfillment, procurement, and customer relations. In this second round of layoffs, more than one-fourth of the workforce, excluding contract workers, will be affected.
The company has reportedly restructured its operations and embraced automation to control costs, improve customer experience, and increase profit margins. In this process, it has eliminated redundant roles to maintain productivity.
In the December quarter, Ola incurred a 50 percent increase in losses, rising from Rs 376 crore during the same period last year to Rs 564 crore. The decline in revenue has been attributed to stiff and growing competition in the electric vehicle (two-wheeler) market. In addition to poor sales, the net loss rose by 14 percent, up from Rs 495 crore.
To make matters worse, the company has also been dealing with complaints from buyers and criticism on social media. After laying off 500 employees in November last year, Ola Electric’s market share in the electric two-wheeler segment fell from 49 percent in Q1 FY25 to 33 percent in Q2. This decline was also linked to rising competition and ongoing service network issues. Furthermore, investor confidence has been negatively impacted, leading to a significant drop in the company’s shares.
