Bengaluru: Ola Electric Mobility Ltd is set to lay off more than 1,000 employees and contract workers as part of a restructuring initiative aimed at reducing costs and addressing growing financial losses. The move comes amid rising regulatory scrutiny and increased competition in India’s electric vehicle (EV) market.
Job Cuts Across Multiple Departments
The layoffs will impact several key departments, including procurement, fulfillment, customer relations, and charging infrastructure. Sources familiar with the matter revealed that the job cuts are part of Ola Electric’s cost-cutting strategy, which seeks to improve operational efficiency and streamline business functions.
This marks the second round of layoffs in less than five months. In November 2023, the company had reportedly laid off around 500 employees. The latest round accounts for over 25% of Ola Electric’s workforce, which stood at around 4,000 as of March 2024. However, since contract workers are not included in public disclosures, the exact number of affected employees remains uncertain.
Automation and Business Restructuring
As part of its restructuring efforts, Ola Electric is automating certain customer service operations to enhance efficiency and reduce expenses. The company is also making changes in its logistics and delivery strategies to control costs.
An Ola spokesperson stated that the company has restructured and automated front-end operations, leading to improved margins, reduced costs, and enhanced customer experience while eliminating redundant roles.
Impact on Showrooms and Service Centers
Apart from corporate job cuts, Ola Electric is also downsizing sales, service, and warehouse staff across its showrooms and service centers. The company had previously expanded its retail presence in December 2023 by launching 3,200 new outlets to improve customer service. However, despite these efforts, customer complaints have surged, reportedly reaching 80,000 per month.
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