Ola Electric to cut 5% of workforce amid automation, profitability push

Ola Electric said it would lay off around 5 per cent of its workforce as part of a restructuring aimed at boosting profitability through greater automation

Bengaluru-based Ola Electric on Friday said it would lay off around 5 per cent of its workforce as part of a restructuring aimed at improving profitability through greater automation, reported PTI. 

The SoftBank-backed electric two-wheeler maker said it is “doubling down” on speed and discipline by increasing automation across its front-end operations. The company added that it is focused on building a “leaner organisation” positioned for long-term, profitable growth, the report added.

 

Ola Electric has been working on a business turnaround following early gains delivered through its Hyperservice programme and service-led execution reset, with same-day resolution now achieved for over 80 per cent of service requests nationwide, the report added.

 

Why Ola Electric is restructuring operations

The company said it remains focused on delivering a stronger customer experience while streamlining operations. It had previously cut more than 1,000 jobs in March 2025, citing automation-driven efficiency improvements.

 

Ola Electric has been facing increased competition from legacy players such as Bajaj Auto, Hero MotoCorp and TVS Motor, as well as rival Ather Energy. The company’s shares have fallen more than 57 per cent since its market debut in August 2024.

 

Sales slump and revised revenue guidance

Moreover, according to data from the Federation of Automobile Dealers Associations (Fada), sales for Ola Electric slumped 51 per cent in 2025, affected by registration issues early in the year.

 

During its second-quarter earnings for FY26, the company lowered its full-year revenue target to Rs 3,000–3,200 crore, down from an earlier estimate of Rs 4,200–4,700 crore, while maintaining its margin forecast for the core automotive business, reported Reuters.