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Ola Electric Mobility is set to lay off approximately 1,000 employees as part of its cost-cutting measures. Sources familiar with the situation disclosed this information on Monday. While the company did not confirm the exact number of job cuts, it acknowledged that the layoffs are part of restructuring and automation efforts to streamline operations.
The company previously let go of around 500 employees last year. A spokesperson for Ola Electric Mobility stated that the company has automated and reorganized its front-end operations, leading to improved margins, lower costs, and an enhanced customer experience. Additionally, non-essential roles have been eliminated to improve productivity.
Second Round of Layoffs in Five Months
This marks the second round of layoffs in the last five months. The job cuts come as Ola Electric takes strategic steps to improve stock management, accelerate customer deliveries, and boost EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) margins by around 10 percentage points.
As part of its cost-saving initiatives, the company has shut down its regional warehouses across India. Instead, it will use its 4,000 retail stores nationwide to manage vehicle stock, spare parts, and supplies. Ola Electric has also renegotiated contracts with vehicle registration agency partners to simplify the registration process and cut expenses.
Financial Loss of ₹376 Crore in Q3
The latest round of layoffs is expected to impact key departments such as procurement, fulfillment, customer relations, and charging infrastructure. Reports indicate that Ola Electric recorded a net loss of ₹376 crore in the third quarter of the last financial year. During this period, the company's operating revenue was ₹1,045 crore, down from ₹1,296 crore in the same quarter the previous year.
Stock Price Drops to ₹55
Ola Electric's stock has seen a significant decline over the past month, in line with a broader stock market downturn. The company's shares have plummeted over 27% within a month. On Monday, the stock closed at ₹55.12, marking a sharp fall from its previous high of over ₹100 since its stock market listing last year.
