Ola Electric to Lay Off Over 1,000 Employees Amid Rising Losses
Ola Electric Mobility Ltd., a leading electric two-wheeler manufacturer in India, is set to lay off more than 1,000 employees and contract workers in an effort to curb escalating losses, according to reports.
This marks the company’s second round of layoffs in five months; approximately 500 jobs were cut in November 2024. As of December 31, 2024, Ola Electric’s workforce had decreased to 3,824 employees.
The latest layoffs will impact multiple departments, including procurement, fulfillment, customer relations, and charging infrastructure. The company is also automating parts of its customer relations operations and revamping logistics and delivery strategies to reduce costs, leading to additional layoffs of front-end staff at showrooms and service centers.
Despite being the top seller of electric two-wheelers in India, Ola Electric has yet to turn a profit, facing high costs and offering heavy discounts to attract customers. In the October-to-December quarter of 2024, the company reported a loss of ₹5.64 billion, up from ₹3.76 billion in the same period a year earlier. Revenue dropped by 19.4% to ₹10.45 billion due to discounted scooter prices, though raw material costs declined by 29%.
Following the announcement of the layoffs, Ola Electric’s stock price fell nearly 5%, having lost 30% since its public listing on August 9, 2024.
The company is also revamping its logistics and delivery strategy, leading to additional layoffs of front-end staff at showrooms and service centers.
Ola Electric’s challenges are compounded by increasing competition from legacy automakers like Bajaj Auto and TVS Motor, which have launched newer models priced near Ola’s scooters. The company hopes that manufacturing its own battery cells will help achieve profitability in the future.
The company is also automating parts of its customer relations operations and revamping logistics and delivery strategies to reduce costs.
Ola Electric’s recent challenges underscore the difficulties faced by electric vehicle manufacturers in balancing growth, customer satisfaction, and profitability in a competitive market.
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