Ola Electric Mobility Ltd is letting go of more than a thousand employees and contract workers as part of cost-cutting measures, Bloomberg reports. The move comes as the electric two-wheeler company faces mounting losses and increased market competition.
The job cuts are expected across multiple departments, including procurement, fulfillment, customer relations, and charging infrastructure. This marks Ola Electric’s second round of layoffs in under five months, following the dismissal of around 500 employees in November. The company, led by Bhavish Aggarwal, has seen a 50% increase in losses for the December quarter and is also under scrutiny from consumer protection authorities.
Ola is also introducing automation in its customer relations division, which could influence the final number of layoffs. Additionally, the company’s market position has weakened, with Bajaj Auto Ltd and TVS Motor Co surpassing Ola in sales figures as of December.
Amid these challenges, Ola recently informed investors that its vehicle registrations might be affected in February due to ongoing cost-cutting negotiations with two key vendors.
Since its highly anticipated IPO in August, Ola Electric’s share price has plummeted by over 60%. On the Bombay Stock Exchange (BSE), its stock was trading at ₹55 at 1:25 pm IST, reflecting a 3.25% drop for the day.
Read Also: