Ola Electric to lay off 1,000 employees amid losses
The Bhavish Aggarwal-led company, which went public in August last year, has been grappling with financial and regulatory challenges.
Agencies
-
Bhavish Aggarwal
New Delhi, 3 MARCH
Ola Electric Mobility Ltd. is cutting over 1,000 jobs, including contract workers, as the company struggles to curb mounting losses, sources familiar with the matter revealed. The layoffs span multiple departments, including procurement, fulfillment, customer relations, and charging infrastructure.
This marks Ola’s second round of job cuts in under five months, following the termination of around 500 employees in November. The latest layoffs account for over a quarter of Ola’s 4,000-employee workforce as of March 2024, though contract workers are not included in public disclosures.
The Bhavish Aggarwal-led company, which went public in August last year, has been grappling with financial and regulatory challenges. In the December quarter, Ola’s losses surged by 50 per cent, and the company has faced scrutiny from India’s market regulator and consumer protection authorities.
As part of its restructuring efforts, Ola is automating parts of its customer relations operations. The company’s spokesperson, in an emailed response to Bloomberg, stated: “We have restructured and automated our front-end operations, delivering improved margins, reduced costs, and enhanced customer experience while eliminating redundant roles for better productivity.” However, the statement did not specify the number of workers affected.
Ola Electric’s troubles extend beyond workforce reductions. The company’s stock has plunged over 60 per cent from its peak following its blockbuster IPO. It has also been losing market share, ceding its once-dominant position in the electric two-wheeler segment to rivals.
Amid these challenges, Ola Electric launched a record 3,200 outlets in December in an effort to expand its footprint and address widespread service complaints. However, local reports indicate the company was dealing with as many as 80,000 customer grievances per month, reflecting dissatisfaction with its after-sales support.
As Ola continues its cost-cutting measures and operational overhaul, analysts remain cautious about its ability to reclaim lost ground in India’s rapidly evolving electric vehicle market. Meanwhile, shares of Ola Electric Mobility on Monday declined more than 5 per cent in the mid-session trade.
Share Now
Leave a Reply
Your email address will not be published. Required fields are marked *
Other Stories
.png)
.png)
.png)
.png)
.png)
.png)
.png)
.png)
