Ola Electric to axe 1,000 staffers in second round of layoffs in 4 months
The current round of layoffs amounts to over a quarter of Ola’s 4,000 employee and includes contract workers not counted in public disclosures
Battling zooming losses, Ola Electric Mobility Ltd, one of India’s top scooter-makers, is laying off over 1,000 employees and contract workers, media reports say.
The cuts at the Bengaluru-based SoftBank Group Corp-backed company span multiple departments, including the procurement division and customer relations.
This will be the second round of layoffs since November last year as the company faces crises on many fronts, the reports say.
Mounting losses
Ola Electric Mobility posted a 50 per cent surge in losses for the December quarter. It has been censured by India’s market regulator and consumer protection authority in recent months.
Around 500 employees were laid off in November 2024. The current round of layoffs amounts to over a quarter of Ola’s 4,000 employee as of the end of March 2024 and includes contract workers not counted in public disclosures.
As part of the restructuring, Ola is automating parts of its customer relations operations, the reports said.
Also read: Bhavish Aggarwal vs Kunal Kamra highlights Ola’s rocky ride ahead
Falling share value
“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,” an Ola spokesperson told Bloomberg.
Front-end sales, service, and warehouse staff at Ola’s showrooms and service centres are also being let go of as the firm revamps its logistics and delivery strategy to reduce costs.
Shares of Ola Electric have fallen more than 60 per cent from its peak since an IPO debut in August last year.
Also read: Ola forays into electric motorcycle segment, launches 3 models
Customer complaints
In recent years, the company has been the target of buyer complaints, social media backlash, and market share loss as rivals toppled it from its perch as the sector leader.
Once India’s dominant electric two-wheeler maker, Ola has been steadily ceding ground to rivals.
The company added a whopping 3,200 outlets in one go in a store launch blitz in December as it sought to expand its footprint and address customer frustration related to shortcomings in service. But clearly, things have not worked out the way the company wanted.
