Troubled Indian electric two wheeler maker Ola Electric, is now scaling back operations, announcing a 5% reduction in its workforce as it looks to cut costs and move toward profitability. The Bengaluru-based startup, which once aimed to dominate India’s EV market, has been facing falling revenue – down about 50% year-over-year – and growing losses running into hundreds of crores. Around 620 employees are expected to be affected in this latest round of layoffs, following earlier cuts in late 2024 and March 2025.
According to the Bhavish Aggarwal‑led company, this latest restructuring is part of a broader strategic transformation aimed at improving operational efficiency, leveraging automation, and enforcing stricter cost discipline. Notably, the company reported having around 12,396 employees as of March 31, 2025.
The move is not so surprising, as the company’s financial performance has continued to weaken over the past year, reflecting softening demand, intensifying competition, and internal challenges. In its first quarter of FY26, Ola’s revenue from operations nearly halved to ₹828 crore, compared with ₹1,644 crore in the same quarter a year earlier, while net losses widened by 23% to ₹428 crore. The company’s financial challenges are also reflected in its share price performance. Since its initial public offering in August 2024, the company’s stock briefly surged but has since fallen sharply, losing more than 50% of its peak value.
At the same time, rivals like Bajaj Auto, TVS Motor, and Ather Energy have gained ground, taking market share that Ola once dominated. After commanding more than 35% of India’s electric two-wheeler market at its peak, Ola Electric’s share fell to around 15% by 2025.
Ola Electric has also faced operational challenges, including service delays and registration issues that dented customer confidence and slowed deliveries. These setbacks have added to its financial problems, despite the company claiming it is working to expand its service network and enhance customer experience.
This is not the first time Ola Electric has implemented layoffs. The company previously reduced its workforce in late 2024, cutting around 500 positions, and again in March 2025, eliminating more than 1,000 jobs. Meanwhile, along with the latest workforce reduction, the firm is focusing on automation across frontline operations and has realigned its full-year revenue guidance for FY26 to ₹30-₹32 billion, down from its earlier forecast of ₹42-₹47 billion.
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