Ola Electric to Lay Off Over 1,000 Employees Amid Profitability Push, What's Wrong With Bhavish Aggarwal's Company

India's leading electric two-wheeler manufacturer, Ola Electric, is set to lay off over a thousand employees and contract workers as part of its efforts to boost profitability. According to a Bloomberg report, the job cuts will impact multiple departments, including procurement, fulfilment, customer relations, and charging infrastructure. Additionally, front-end sales, service, and warehouse staff at showrooms and service centers are also affected.

Ola Electric has not officially responded to these reports yet. The company had previously laid off around 500 employees last year in a similar cost-cutting exercise.

Restructuring for Profitability

The decision to reduce workforce is reportedly aimed at revamping logistics and delivery strategies while cutting operational costs. Ola Electric, which launched its Initial Public Offering (IPO) last year, has been witnessing a decline in sales, selling around 25,000 units last month. Despite being backed by SoftBank, the company is facing challenges due to high operational costs and lower-than-expected revenue generation.

Ola Electric's Market Struggles

Ola Electric shares have not performed as strongly as anticipated since the IPO. While the company continues to offer heavy discounts on its electric scooters, it has yet to turn a profit since its launch in August 2021.

According to market intelligence platform Tracxn, Ola Electric had 3,824 employees by the end of 2024, reflecting a 2% decrease from the previous year due to prior layoffs.

Looking Ahead

As India's EV landscape evolves, Ola Electric faces increasing competition, cost pressures, and operational hurdles. The upcoming months will be crucial for the company as it navigates restructuring and seeks to achieve financial stability.