Ola Electric is firing over 1,000 employees to curb losses
What's the story
Ola Electric is laying off over 1,000 employees and contract workers, as per Bloomberg. The move comes as the company attempts to curb its growing losses. The job cuts will impact several departments such as procurement, customer relations, fulfillment, and charging infrastructure. This is the second round of layoffs in five months for Ola Electric.
Past layoffs
Struggles and previous layoffs
The company, which went public in August 2024, has been battling several issues. It reported a 50% increase in losses for the December quarter and drew criticism from India's market regulator and consumer protection authority. In November last year, Ola Electric laid off around 500 employees. The current job cuts are over a quarter of the company's 4,000-strong workforce as of end-March 2024.
Restructuring
Restructuring and plans
As part of its restructuring process, Ola Electric is automating some of its customer relations operations. An Ola spokesperson said that the company has "restructured and automated our front-end operations delivering improved margins, reduced cost, and enhanced customer experience while eliminating redundant roles for better productivity." The spokesperson declined to comment on the exact number of employees affected by these layoffs.
Market performance
Market performance and future prospects
Ola Electric's shares have plummeted over 60% from its peak since a stellar IPO debut in August. The company has been plagued with buyer complaints, social media backlash, and loss of market share to competitors. On February 7, the company announced it sold more than 25,000 units in February with a 28% market share—well below the 50,000 units/month target set by CEO Bhavish Aggarwal for EBITDA breakeven.