Bengaluru: Ola Electric has announced a workforce reduction of 400-500 employees across various departments as part of a restructuring exercise aimed at streamlining operations and reducing costs. While specific roles have not been disclosed, sources indicate that the restructuring will affect multiple teams. The restructuring was revealed recently and is expected to be completed in the coming weeks.
This decision aligns with Ola Electric’s strategy to optimize its operations and manage financial pressures in the face of increasing competition and declining demand in the electric two-wheeler market. Despite leading the Indian electric scooter market with a 50% share, the company has seen a dip in vehicle registrations recently. In 2023, the company reported a net loss of ₹1,472 crore, highlighting the need for financial optimization. Additionally, increased competition from companies like Ather Energy and traditional automakers such as TVS Motors has resulted in added pressure to maintain profitability. In April, Ola shut down its ride-hailing operations in New Zealand, Australia, and the UK to sharpen its focus on expanding its electric fleet in India.
The company plans to implement these changes through layoffs and potential replacements with lower-cost hires. This is Ola Electric’s third major workforce restructuring in recent years, following similar layoffs in 2023 and early 2024.
Ola founder Bhavish Aggarwal claims that despite these challenges, Ola Electric remains a dominant player in India’s electric vehicle market, showcasing resilience and a commitment to innovation. The company recently adjusted the pricing of its S1X electric scooters to attract more customers, reflecting its strategic efforts to sustain market leadership.
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