Ola Electric is reportedly preparing to lay off up to 500 employees across various departments as part of an ongoing restructuring effort aimed at achieving profitability. This move follows the company’s challenging financial performance, with a consolidated net loss of ₹495 crore for Q2 of FY 2024-25. Although this marks a 5.53% reduction from the previous year’s ₹524 crore loss, the company is striving to control operational costs ahead of potential future financial moves, including an initial public offering (IPO).
Despite the losses, Ola Electric’s revenue has shown promising growth, increasing by 39.06% from ₹873 crore to ₹1,214 crore, primarily driven by a 73.6% rise in electric vehicle (EV) deliveries. However, the company still faces the challenge of turning this revenue growth into sustainable profits.
Ola Electric’s planned workforce reduction is part of ongoing cost-cutting measures, following layoffs and business closures in previous years.
In 2022, the company laid off 1,000 employees, shutting down used cars, cloud kitchens, and grocery delivery businesses to focus on EVs.
The latest round of layoffs targets various roles, with some positions expected to be replaced by new hires at lower costs.
This restructuring aligns with a broader trend in tech and EV sectors, where companies scale down operations to navigate financial uncertainty.
Ola Electric’s leadership hopes these adjustments will strengthen its financial position, positioning the company for a more sustainable future.
