Ola Electric to cut over 1,000 jobs: report
Ola Electric Mobility, India’s top electric two-wheeler maker by sales, is laying off more than 1,000 employees and contract workers as it seeks to prioritise profitability, Bloomberg News reported on Monday, citing people familiar with the matter.
This is the second round of layoffs for the SoftBank-backed company in five months. It had cut about 500 jobs in November, according to media reports, which had left it with 3,824 employees as of December 31, 1.8% lower than in 2023, according to data from market intelligence platform Tracxn.
The latest job cuts span multiple departments, including procurement, fulfillment, customer relations and charging infrastructure, Bloomberg reported.
The company has yet to turn a profit as costs remain high and as it offers heavy discounts to lure customers. Ola Electric did not immediately respond to a Reuters request for comment.
Bloomberg said that front-end sales, service and warehouse staff at Ola’s showrooms and service centres are also being laid off amid a revamp of its logistics and delivery strategy to reduce costs.
The company’s stock fell just under 5% to a session-low of 54.05 rupees after the report. It has now lost 30% since the company went public on August 9.
Ola Electric Mobility is an Indian electric vehicle (EV) manufacturer and a subsidiary of Ola Cabs, a popular ride-hailing company in India. Founded in 2017, Ola Electric Mobility aims to revolutionize the Indian EV market by providing affordable, sustainable, and accessible mobility solutions.
Ola Electric Mobility has already made significant strides in the Indian EV market. In 2020, the company launched its first electric scooter, the Ola S1, which quickly gained popularity due to its sleek design, impressive range, and affordable pricing. The company has also established a robust charging infrastructure network across India, making it easier for customers to charge their vehicles on the go.
Ola Electric Mobility has ambitious plans to expand its product lineup and further develop its charging infrastructure network. The company has committed to investing heavily in research and development, with a focus on improving battery technology, reducing costs, and enhancing the overall customer experience. With its innovative approach and commitment to sustainability, Ola Electric Mobility is poised to play a leading role in India’s transition to electric mobility.
