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Ola Electric announced plans to terminate over 1000 staff members through workforce reductions to address growing financial losses. A second extensive layoff occurred after Ola Electric dismissed around 500 employees in November 2024.
The recent job reduction at Ola Electric affects multiple departments by terminating permanent staff members and temporary workers in procurement, customer relations, fulfilment and charging infrastructure. The company currently has 4,000 workers, yet plans to eliminate more than one-quarter of its employees in March 2024.
The company Ola Electric faces major financial problems. Ola Electric revealed a net quarterly loss of Rs 564 crore during the third quarter of FY 2024, following a 50% increase from Rs 376 crore during the corresponding period of the previous year. The company reported a drop of approximately 20% in its quarter revenue resulting in a total revenue of Rs 1,045 crore compared to Rs 1,296 crore in the previous quarter.
The extensive financial losses have generated doubts about the company's ability to achieve profit margins and market position. Ola Electric implemented various strategic initiatives after its financial difficulties to improve operational performance. Under its restructuring plan, the company automated key operational sections with the objective of cutting expenses while improving profitability and customer satisfaction.
The workforce reductions are a component of this operational reorganization, while the team focuses on improving logistics systems, lowering warehouse counts and enhancing delivery methods. The company secured new agreements with vehicle registration partners to achieve additional savings from operational expenses.
Ola Electric established dominance in India’s electric scooter market before experiencing weakening performance throughout the past few months. From its peak in August 2024, the company initiated a public offering which shot its stock value up but subsequently dropped by over 60%.
Ola Electric's market position began deteriorating as its main competitors Bajaj Auto and TVS Motor Co., managed to beat the company in electric scooter unit sales. The company's diminishing market leadership has suffered from an increasing number of disgruntled customers who demonstrate complaints about both service quality and their products. According to published data Ola Electric received approximately 80,000 customer complaints monthly.
Despite multiple setbacks, the organization continues its market growth initiative by establishing new retail locations. In December 2024 Ola Electric launched 3,200 new service outlets through a single event to improve service quality and raise customer satisfaction. CEO Bhavish Aggarwal established 50,000-unit monthly sales targets for the company, but Ola Electric continues to fail to reach these numbers. The company achieved a 28% market share in February 2025 but its sales amounted to less than half of its target volume, reaching only 25,000 units.
Financial losses at Ola Electric, alongside operational restructuring show that the company must navigate a difficult future to reestablish itself in both competitive and essential markets.
