Ola Electric, India, has undertaken an internal restructuring, leading to layoffs of around 1,000 employees across sales, distribution, and marketing. The company, led by Bhavish Aggarwal, cited automation and cost-cutting as reasons for this move. This comes after a similar downsizing in November 2024, which affected 500 employees. The restructuring follows top-level exits and financial losses reported in the December quarter.
Ola Electric, a leading electric two-wheeler manufacturer based in India, has initiated a major internal restructuring, resulting in the layoff of approximately 1,000 employees. The move impacts sales, distribution, and marketing departments as part of the company’s strategy to streamline operations and improve financial efficiency.
The company, led by Bhavish Aggarwal, has not disclosed the exact number of affected employees but confirmed the restructuring. “We have restructured and automated our front-end operations, delivering improved margins, reduced cost, and enhanced customer experience while eliminating redundant roles for better productivity,” an Ola Electric spokesperson stated.
This marks the second major downsizing in recent months, following a similar move in November 2024, which affected at least 500 employees. The restructuring also follows key leadership departures, including Chief Marketing Officer Anshul Khandelwal and Chief Technology Officer Suvonil Chatterjee, who resigned in December 2024.
Ola Electric has undertaken multiple restructuring phases in recent years. In September 2022, ahead of its planned IPO, the company streamlined its operations. However, the latest layoffs signal a shift in strategy as the company adapts to the evolving electric vehicle (EV) market and competitive pressures.
Industry analysts suggest that the job cuts are aimed at financial optimization as Ola Electric navigates challenges in the growing but competitive EV sector. The company reported widening losses in its December quarter results, with a net loss of ₹564 crore, compared to ₹376 crore in the same quarter last year. Additionally, revenue for the quarter declined by 19.4% to ₹1,045 crore.
As Ola Electric gears up for future growth, its restructuring efforts indicate a focus on financial stability and operational efficiency, crucial for sustaining its position in India’s EV market.
