Ola Electric Mobility Ltd., one of India’s leading electric scooter manufacturers, is reportedly cutting over a thousand jobs, including contract workers, in an effort to curb rising losses. Sources familiar with the matter, who requested anonymity, revealed that the layoffs span multiple departments such as procurement, fulfillment, customer relations, and charging infrastructure.
This marks the company’s second round of job cuts in less than five months. Backed by SoftBank Group Corp., Ola Electric has been facing multiple challenges, including a 50% increase in losses during the December quarter. Additionally, the company has come under scrutiny from India’s market regulator and consumer protection authorities in recent months.
In November last year, reports suggested that around 500 employees were let go. The latest workforce reduction affects more than a quarter of Ola’s 4,000-strong employee base as of March 2024, though contract workers, who are not reflected in public disclosures, are also impacted.
As part of its restructuring strategy, the company is automating sections of its customer relations processes, sources indicated. However, the final number of job cuts may be subject to change based on business requirements.
Since its highly successful IPO debut in August, Ola Electric’s shares have tumbled by more than 60% from their peak. In recent years, the company has faced a wave of customer grievances, criticism on social media, and a decline in market share, as competitors have overtaken its once-dominant position in the industry.
