Ola Electric has reportedly laid off more than 1,000 employees and contract workers as part of a major restructuring effort aimed at cutting losses and streamlining operations. According to insider sources cited by Bloomberg, the move is part of a broader strategy that includes automating customer relations and revamping logistics and delivery processes.
The layoffs have affected several departments, including charging infrastructure, customer relations, procurement, and fulfillment. Additionally, front-end sales, service, and warehouse roles at Ola’s showrooms and service centres have also taken a hit. The Bengaluru-based company appears to be focusing on optimising costs and boosting productivity, even if that means making some tough decisions.
This round of layoffs accounts for more than 25% of Ola’s workforce, which was around 4,000 employees as of March 2024. However, that number includes contract workers, who aren’t always reflected in the company’s official workforce disclosures.
Ola is reportedly automating significant parts of its customer relations operations, aiming to improve profit margins, lower costs, and enhance customer experience.
A company spokesperson confirmed the restructuring in an email to Bloomberg, saying, “We have restructured and automated our front-end operations, delivering improved margins, reduced costs, and enhanced customer experience while eliminating redundant roles for better productivity.” It seems like Ola is betting big on automation to fix its numbers.
This shake-up comes at a time when the company is facing financial challenges. Ola Electric reported a 50% increase in losses for the December 2024 quarter, highlighting its ongoing struggle to balance growth and profitability. The market hasn’t reacted kindly to these developments.
On Monday, Ola Electric’s shares dropped by 5.36%, hitting a 52-week low of Rs 53.71 on the BSE. That’s a steep fall—66% down from its peak of Rs 157.53 after the company’s IPO debut in August 2024.
Notably, this isn’t the first round of layoffs. Less than four months ago, in November 2024, Ola let go of nearly 500 employees. It’s clear that the company has been aggressively trying to trim down its workforce and expenses.
Despite these challenges, Ola Electric reported selling over 25,000 units in February, securing a 28% market share. That might sound like a win, but it still falls short of the ambitious 50,000-unit monthly target that CEO Bhavish Aggarwal had set. That target was a crucial benchmark for achieving EBITDA breakeven, as mentioned in a February earnings call.
