Ola Electric, the electric vehicle (EV) arm of Bhavish Aggarwal-led Ola, has reportedly laid off more than 1,000 employees and contract workers as part of its restructuring efforts to curb widening losses. The layoffs primarily affect employees in sales, service, and warehouse roles at showrooms and service centers across the country, according to a Bloomberg report.
A spokesperson for Ola Electric, responding to YourStory, refrained from confirming the reported number of job cuts, stating, “We will not comment on speculative numbers.” However, the company acknowledged the restructuring efforts, attributing the move to eliminating redundant roles.
“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 said in a statement.
Second Round of Layoffs Amid Financial Struggles
This marks the second round of layoffs at the Bengaluru-based EV manufacturer in recent months. In November 2023, the company let go of 500 employees in a bid to drive profitability. Despite these cost-cutting measures, Ola Electric’s losses widened significantly in the quarter ended December 31, 2024, reaching ₹562 crore, compared to ₹374 crore in the same period the previous year.
The company has been navigating a challenging market landscape, with increasing competition impacting its financials. In December 2023, Ola Electric briefly lost its position as the top player in the electric two-wheeler (E2W) market to Bajaj Auto but later reclaimed its lead. In February 2024, the company sold 25,000 units, capturing a 28% market share. However, discrepancies arose in official sales figures on the Vahan data portal due to ongoing negotiations between Ola Electric and vehicle registration agencies. These talks were reportedly aimed at reducing costs and streamlining vehicle registration processes.
Warehouse Closures and Cost Optimization Efforts
In addition to layoffs, Ola Electric recently shut down regional warehouses across India as part of its cost-cutting strategy. The company announced that it would rely on its extensive network of 4,000 retail stores nationwide for vehicle inventory management, spare parts distribution, accessories, and last-mile deliveries.
This operational shift is expected to improve the company’s financial performance. According to Ola Electric, the decision to eliminate regional warehouses is projected to enhance EBITDA margins by nearly 10 percentage points.