Ola Electric’s another job cut– lays off 1000+ employees

As an effort to restructure and manage losses, Ola Electric Mobility has decided to lay off 1,000+ employees and workers on contract, Bloomberg reported. Employees of multiple departments, including fulfilment, procurement, charging infrastructure and customer relations, are reported to be affected by this decision. 

The update marks Ola’s second round of job cuts in the last five months. Earlier, in November, the company laid off almost 500 employees. The most recent round of layoffs represents more than 25% of the company's 4,000-person employment as of March 2024. However, contract employees are not included in this figure, as they are not considered in the business's official disclosures.

Ola had "automated front-end operations to improve margins, reduce costs, and enhance customer experience while eliminating redundant roles for better productivity," according to a company official who confirmed the reorganization to Bloomberg. However, they did not state how many employees were impacted.

In the December 2024 quarter, the company's net loss increased to Rs 564 crore from Rs 376 crore in the same period the year before.

Since its August 2024 stock market debut, Ola Electric's shares have dropped more than 60% from their peak. The business has also had to contend with increasing competition, which has caused it to lose its top spot as India's largest seller of electric scooters. According to government data from December 2024, TVS Motor Co. and Bajaj Auto Ltd. both surpassed Ola Electric as the market leaders.

To reduce expenses, Ola is reorganizing its delivery and logistics plans and automating some of its customer service functions. At its showrooms and service centers, workers in sales, service, and warehouse positions are also being let go.

To solve issues with accessibility and service, Ola Electric opened 3,200 retail locations nationwide in December 2024 as part of an ambitious expansion. This action was taken in response to a spike in consumer complaints about poor product and service quality. According to some sources, up to 80,000 complaints were sent to Ola Electric each month.

Delays in the supply chain have also been a problem for the business. In an effort to reduce expenses and increase efficiency, it renegotiated contracts with two significant vendors earlier this year, alerting investors that this will have an impact on vehicle registrations in February 2025.