Ola Lays Off Over 1,000 Employees to Cut Losses: Cites Automation as Key Reason

Ola Lays Off Over 1,000 Employees to Cut Losses: Ola Electric Mobility Ltd is laying off almost 1,000 employees and contract workers as part of the process of cutting losses, Bloomberg reported, quoting several individuals familiar with the matter. The layoffs will affect various departments, including charging infrastructure, customer relations, procurement, and fulfillment.

Ola Electric fell 5.36 percent on its share value on Monday, touching a 52-week-low of Rs 53.71 apiece on the BSE. This is down 66 percent from its record-high Rs 157.53 per share after listing on the exchange.

Ola has retrenched employees for the second time in less than four months since November 2024 when the EV company laid off nearly 500 employees. The company led by Bhavish Aggarwal reported a loss increase in December 2024 by 50%. It was listed in the last August.

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Over 25% of the workforce-that is also predominantly contract workers-not counted in the public disclosures of the company-works with Ola at end-March 2024, according to the Bloomberg report.

According to the report citing sources, Ola is also automating part of its customer relations operations as part of a wider restructuring initiative. They added that the future course of layoffs would be determined by the business requirements.

“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.

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Even front-end sales as well as service employees serving at the various Ola showrooms and service centers, including those in Bengaluru, are to be restructured, sources indicated, as the company revamps its logistics and delivery strategy to save costs.

Ola Electric's shares have fallen off more than 60 percent from the peak since their high-profile IPO debuts in August. The company has been facing increasing customer complaints, growing criticism on social media, and rising competitors, all of which have began slowly eroding their share of the sector.

On Friday, Ola Electric informed Indian exchanges that 25,000+ units were sold in the month of February and took it to a low 28% market share, remarkably falling short of his CEO Bhavish Aggarwal. He indicated on February 7 during the earnings call that the monthly target would be a significant 50000 units for the EBITDA breakeven. EBITDA means earnings before interest, tax, depreciation, and amortization.

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