MUMBAI: Electric two-wheeler manufacturer Ola Electric is laying off over a thousand employees and contract workers as part of a cost-cutting measure to address mounting losses. According to Bloomberg, the layoffs are part of a broader restructuring effort aimed at optimizing operations and steering the company toward profitability.
When contacted, an Ola Electric spokesperson said, “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.”
In November last year, it was reported that the Bhavish Aggarwal-founded company had laid off approximately 500 employees across various teams as part of a restructuring initiative. Despite the reduction in headcount, the company’s losses surged by 50% year-on-year (y-o-y) to Rs 564 crore in the December quarter. During the same period, Ola Electric’s revenue declined by 19% to Rs 1,045 crore.
In addition to layoffs, Ola Electric has witnessed the departure of several top-level executives in recent months, including Anshul Khandelwal, Chief Marketing Officer, and Suvonil Chatterjee, Chief Technology and Product Officer.
In February 2025, Ola Electric reported selling over 25,000 units, a 26% decline compared to 33,846 units sold in the same month the previous year. While Ola claims it remains the market leader in the electric two-wheeler segment, its sales are significantly lower than the peak of May 2024.
During a post-earnings call with analysts on February 7, Aggarwal stated that Ola Electric aims to reach 50,000 units in monthly sales within a few quarters.