Ola Electric Implements Job Cuts Amid Cost Reduction Efforts - Report

According to a report by Bloomberg, Ola Electric Mobility is laying off over 1,000 employees and contract workers as part of efforts to control increasing losses. The job cuts span multiple departments, including procurement, fulfilment, customer relations, and charging infrastructure.  

The report highlights that this is the second round of layoffs in under five months, following the company’s decision to let go of around 500 employees in November 2024. The latest workforce reduction represents more than a quarter of Ola Electric’s total employee base as of March 2024, although contract workers are not included in public disclosures.  

Ola Electric, which listed in August 2024, posted a 50% surge in losses for the December quarter. The company has been working to automate parts of its customer relations operations and restructure its logistics and delivery strategy to reduce costs. Employees working in front-end sales, service, and warehouse operations are also affected by the layoffs, Bloomberg reported.  

The company’s stock has declined over 60% from its peak following its initial public offering, with increasing customer complaints and market share losses affecting its performance. Bajaj Auto surpassed Ola Electric as India’s top electric scooter manufacturer in December 2024, pushing it to third place behind TVS Motor.  

Ola Electric recently announced that it had sold over 25,000 units in February, securing a 28% market share. However, this falls short of the 50,000-unit monthly target that CEO Bhavish Aggarwal had identified as the threshold for EBITDA break-even. The company has also been renegotiating terms with vendors to optimize costs and improve efficiencies.  

In December 2024, Ola Electric expanded its retail presence by launching 3,200 outlets in a single move, aiming to improve service and address customer concerns. However, Bloomberg noted that the company has been dealing with a high volume of customer complaints, with reports suggesting as many as 80,000 grievances per month.