A new wave of job cuts has been initiated at Ola Electric Mobility. The latest round of layoffs is set to affect around 1000 employees – amounting to around 25% of its 4,000-strong workforce – as part of a restructuring initiative that is aimed at curbing financial losses for the firm.
The development marks the second major round of job cuts in under five months, following the termination of around 500 employees last November. According to reports, the current round of layoffs will affect employees in multiple departments, including procurement, charging infrastructure, customer relations, and fulfillment.
The announcement of the layoffs had an immediate impact on Ola Electric’s stock, which plummeted to a 52-week low during intraday trading. Shares of the company hit ₹53.7 per share before recovering slightly to close at ₹55.18, marking a decline of 2.94%. The company, which went public last year (in August 2024) with a highly anticipated IPO, has seen its stock price erode significantly since its debut. From its 52-week high of ₹157.53, the stock has dropped more than 65%.
A company spokesperson commented on the development, stating, “We have restructured and automated our front-end operations delivering improved margins, reduced cost, and enhanced customer experience while eliminating redundant roles for better productivity.” The restructuring is aimed to streamline logistics and eliminate inefficiencies, and Bloomberg reports that it will automate some of its customer relations work. And to add to this, as part of this overhaul, the company has also eliminated regional warehouses across India, opting instead to rely on its extensive network of 4,000 retail stores for inventory management, spare parts, and last-mile deliveries.
For now, the firm aims to increase its EBITDA margins by nearly 10 percentage points through better inventory management and streamlined customer deliveries. However, its performance continues to lag behind expectations, with CEO Bhavish Aggarwal previously stating that the company would need to achieve 50,000 monthly deliveries to reach EBITDA breakeven. In February, Ola sold over 25,000 EV units, securing a market share of 28% — far below the company’s target.
The layoffs come amid worsening financials for Ola Electric. In the third quarter of the fiscal year 2024-25 (Q3 FY25), the company reported a sharp 50% increase in consolidated net loss, reaching ₹564 crore, compared to ₹376 crore in the same period the previous year. The losses were attributed to declining revenue, heightened competition in the EV market, and one-time costs incurred to address service-related issues. During the same period, the company’s revenue from operations fell 19% year-on-year, dropping to ₹1,045 crore from ₹1,296 crore in Q3 FY24.
For now, Ola Electric is facing stiff competition from legacy automakers such as Bajaj Auto and TVS Motor, as well as emerging EV rivals like Ather Energy. Recent data from the VAHAN portal revealed that Ola’s two-wheeler EV registrations plummeted by over 65% in February, down to 8,390 units from 24,376 units in January. In contrast, Bajaj Auto overtook Ola Electric in the rankings, becoming the segment leader in terms of monthly registrations.
