Ola Electric to layoff 500 employees as part of restructuring: Report
- Ola Electric is currently facing storm over its alleged poor EV sales and servicing as it faces investigation from central agencies.
India's largest electric two-wheeler manufacturer Ola Electric is planning cut around 500 jobs as part of its restructuring plans. According to a report published by business news publication Moneycontrol, sources say that the EV maker has opted for layoffs ‘to improve its margins in its efforts to attain profitability’. Ola Electric, which manufactures electric scooters and gearing up to launch electric motorcycles, currently employs more than 4,000 employees. The report of the job cuts come amid Ola Electric facing investigation over its alleged poor after-sales and services.
According to the report, Ola Electric led by its Founder and CEO Bhavish Aggarwal is planning to undertake a restructuring exercise to make its business more profitable. The EV maker had launched its IPO In August this year. However, its share prices have gone down in recent past despite an increase in revenue in Q2 of FY 2024-25. Ola Electric has not responded yet to the report of layoffs.
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Ola Electric's tryst with controversy
The report of job cuts at Ola Electric comes at a time when the EV maker is facing investigation by the Bureau of Indian Standards (BIS) into the allegations of poor service and product. The consumer watchdog Central Consumer Protection Authority (CCPA) had asked BIS to conduct the probe after it issued a show-cause notice to Ola Electric over alleged violation of consumer rights, misleading advertisement and unfair trade practices.
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The CCPA's show-cause notice was issued after it found more than 10,000 consumer complaints against Ola Electric. Last month, Ola Electric had claimed that it has resolved more than 99 per cent of the 10,644 customer complaints. Bhavish Aggarwal, CEO and founder at Ola Electric, had said, “Two-thirds of it actually are just minor issues like loose parts or customers unfamiliar with the software used." However, the CCPA does not seem to be satisfied with Ola Electric's claims.
This will not be the first restructuring exercise to be undertaken bythe EV maker. In 2022, Ola had laid off around 1,000 employees as it shut down its used car business and two others to concentrate more on the EV business.
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