Ola Electric to cut jobs, lay off around thousand employees: Report

Ola Electric, India's leading electric two-wheeler manufacturer, is planning to lay off over a thousand employees and contract workers. According to a report by Bloomberg, the EV maker has decided to cut jobs in an effort to aim for more profit. Ola Electric has not reacted to this development yet. The EV maker had earlier laid off around 500 employees last year. Ola Electric, which launched its maiden IPO last year, is currently witnessing a slowdown in sales with around 25,000 units sold last month.

Ola Electric continues to lead the electric two-wheeler segment. Despite a drop of over 25 per cent in sales in February, it has managed to maintain a market share of 28 per cent in the electric two-wheeler segment.

Job cuts at Ola Electric: See who are affected

According to the Bloomberg report, this is the second time that Ola Electric will lay off its employees. These workers are part of several departments, including procurement, fulfilment, customer relations and charging infrastructure. The report also said that Ola is laying off front-end sales, service and warehouse staff at showrooms and service centres. The decision has been reportedly taken to revamp its logistics and delivery strategy and reduce costs.

In November last year, the SoftBank-backed EV maker had cut jobs. By the end of last year, Ola Electric had 3,824 employees, nearly two per cent less than what it had in 2023, said a report by market intelligence platform Tracxn.

Ola Electric shares have not performed as well as the company expected when it launched last year. Besides slowdown in sales, Ola Electric is also battling high costs and low turnover. Ola continues to offer heavy discounts on its electric scooters and has not turned profitable four years since its debut in the segment back in August, 2021.

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