Ola Lays Off Over 1,000 Employees To Reduce Losses, Says 'We Have Automated...'
Ola is automating parts of its customer relations operations as part of a broader restructuring effort, according to a Bloomberg report citing sources.
Ola Electric Mobility Ltd is laying off more than 1,000 employees and contract workers in an effort to cut losses, according to Bloomberg report citing people familiar with the matter. The departments to be affected by the layoffs are charging infrastructure, customer relations, procurement, and fulfillment, among others.
Following the layoff reports, shares of Ola Electric on Monday crashed 5.36 per cent to hit a fresh 52-week low of Rs 53.71 apiece on the BSE. This is 66% down from its peak of Rs 157.53 apiece touched after listing.
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This is the second round of layoffs at Ola in under four months after November 2024, when the EV maker sacked nearly 500 employees. The Bhavish Aggarwal-led company posed a 50% increase in losses for the latest December 2024 quarter. The company was listed last August.
The current round of layoffs amount to over a quarter of Ola’s 4,000 employee size as of end-March 2024, but includes contract workers that aren’t counted in the company’s public disclosures, according to the Bloomberg report.
Ola is automating parts of its customer relations operations as part of a broader restructuring effort, according to the report citing sources. The company’s layoff plans may evolve based on business needs, they added.
“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 via email, without disclosing the number of job cuts.
The restructuring also affects front-end sales, service, and warehouse employees at Ola’s showrooms and service centers, as the Bengaluru-based firm revamps its logistics and delivery strategy to cut expenses, sources said.
Since its high-profile IPO debut in August, shares of Ola Electric have tumbled more than 60 per cent from its peak. The company has faced growing consumer complaints, social media criticism, and increasing competition, eroding its dominance in the sector.
On Friday, Ola Electric informed Indian exchanges that it sold over 25,000 units in February, capturing a 28% market share—well below the 50,000-unit monthly target that CEO Bhavish Aggarwal cited in a February 7 earnings call as necessary for EBITDA breakeven. EBITDA refers to earnings before interest, tax, depreciation, and amortization.
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