 "Ola Electric, OLA")
Two-wheeler electric vehicle (EV) maker Ola Electric Mobility is laying off around 1,000 employees — about 25 per cent of its 4,000-strong workforce — as part of a restructuring effort aimed at reducing losses, according to industry sources.
The layoff news saw the SoftBank Group-backed firm’s stock hit a 52-week low in intraday trading. Its share price hit Rs 53.7 per share intraday, but recovered and closed at Rs 55.18, down 2.94 per cent.
According to sources, these layoffs are part of a restructuring exercise started by Bhavish Aggarwal-led firm in November 2024. The job cuts affect multiple departments, including procurement, fulfilment, customer relations, and charging infrastructure. In November, the company had laid off around 500 employees, according to reports.
“We have restructured and automated our front-end operations delivering improved margins, reduced cost, and enhanced customer experience while eliminating redundant roles for better productivity,” said an Ola spokesperson, without specifying the number of jobs that are being cut.
The firm undertook similar restructuring exercises in 2022 ahead of its initial public offering (IPO). Ola Electric Mobility launched its IPO on August 2, 2024, concluding subscriptions on August 6, 2024. Since its highly successful IPO debut in August, Ola Electric’s stock has dropped more than 60 per cent from its peak.
Ola Electric has also been grappling with increasing buyer complaints, social media backlash, and a shrinking market share as competitors gain ground. The company faces stiff competition from players like Ather, Bajaj, Ampere, Hero MotoCorp, and TVS Motor Company, many of whom are ramping up investments in R&D and scaling operations.
Ola Electric’s losses widened 50 per cent for the December quarter. It posted a net loss of Rs 564 crore for the third quarter of FY25, from Rs 376 crore in the year-ago quarter. Ola Electric reported a net loss of Rs 495 crore for the quarter ended September 2024.
Its revenue from operations in Q3FY25 dropped 19.36 per cent to Rs 1,045 crore, down from Rs 1,296 crore in the same period last year (Y-o-Y). The company said its path to profitability would be driven by improvements in gross margin and optimisation in operating costs, including operating leverage through product portfolio expansion, category expansion, and technology leadership.
According to government vehicle registration data, Bajaj Auto surpassed Ola Electric to become the market leader in electric scooters in December, pushing Ola Electric to third place, behind TVS Motor Co.
However, Ola Electric recently said it sold more than 25,000 units in February, with a market share of over 28 per cent, cementing its leadership in the EV two-wheeler segment. The company attributed this to a strong S1 portfolio and a sales-and-service network of 4,000 stores across the country. It also said a strong uptick in demand beyond urban cities, particularly from Tier-III and Tier-IV towns.
PINK-SLIPPED
Ola Electric Mobility laying off around 1,000 of its 4,000-strong workforce
Will affect several departments, including procurement, fulfilment, customer relations, and charging infrastructure
Firm undertook similar restructuring exercises in 2022 ahead of its IPO in 2024
Losses increased 50% in December quarter
In recent years, the company has faced buyer complaints, social media criticism, and a loss of market share
