Ola Electric layoffs: 500 employees likely to lose jobs amid restructuring

Ola Electric is reportedly preparing for a restructuring drive that could impact over 500 employees, representing more than 12% of its 4,000-strong workforce, reported Business Standard.
The move aims to streamline operations, eliminate redundant roles, and enhance profitability. The restructuring process, which began months ago, is expected to conclude by December 2024.
“This exercise is focused on cost optimisation and aligning the company’s operations with its profitability goals,” a source familiar with the matter told Business Standard.
Similar steps were taken by Ola Electric in 2022 ahead of its IPO.
The company launched its IPO on August 2, 2024, with subscriptions closing on August 6. Shares debuted on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on August 9, marking a significant milestone for the electric vehicle (EV) giant.
In its first post-IPO financial results for Q2 FY25, Ola Electric reported a 38.5% year-on-year revenue growth to Rs 1,240 crore, primarily driven by a 73.6% increase in deliveries. The company delivered 98,619 units during the quarter, up from 56,813 units in Q2 FY24.
Despite strong financial performance, the restructuring reflects a focus on long-term sustainability.
Ola Electric’s network of 782 company-owned stores delivered an average of 130 sales per quarter, outperforming industry norms by 2-3 times. The firm plans to expand its network to 2,000 stores by March 2025, integrating service infrastructure alongside retail outlets.
Ola Electric has positioned itself as a leader in the EV scooter market with a broad portfolio of six models priced between Rs 75,000 and Rs 1,50,000. The company is also diversifying into two-wheeler and three-wheeler segments, with plans to introduce 20 new products over the next two years, including at least one launch every quarter.
The company’s vertical integration strategy includes in-house cell manufacturing at its Gigafactory. By Q1 FY26, Ola Electric aims to incorporate these cells into its two-wheeler portfolio. Trial production achieved a milestone in Q2 FY25, with over 20,000 cells manufactured as production systems at the Gigafactory reached full operational capacity.
Shares of the company were trading 1.25% higher at Rs 68.08 on the Bombay Stock Exchange.