Ola Electric Layoffs: Ola Electric is reportedly planning to start a restructuring initiative that will impact over 500 employees across various roles within the organisation. The company is implementing these layoffs as part of its strategy to improve margins and achieve profitability, according to a Moneycontrol report citing familiar sources.
The Bhavish Aggarwal-led firm carried out two restructuring exercises in September 2022, ahead of its IPO. During these exercises, it announced a series of new hires aimed at centralising and streamlining operations across various verticals.
In July 2022, the company announced a major reorganisation plan, laying off approximately 1,000 employees as it shut down three business divisions—Used Cars, Cloud Kitchen, and Grocery Delivery—to refocus on its EV business. Despite the layoffs, the company also planned to hire around 800 employees specifically for its EV sector.
This development comes seven months after Ola Electric’s sister company, Ola Consumer, announced plans for a restructuring that would impact at least 10 per cent of its staff. During this period, Hemant Bakshi, CEO of Ola Cabs (the ride-hailing arm of ANI Technologies), also resigned from the company.
Earlier this month, Ola Electric released its Q2 FY25 results, reporting a 38.5 per cent year-on-year increase in revenue, reaching Rs 1,240 crore. This growth was driven by a 73.6 per cent rise in deliveries, which surged from 56,813 units in Q2 FY24 to 98,619 units in Q2 FY25.
Meanwhile, the Central Consumer Protection Authority (CCPA) has initiated an investigation into complaints regarding "deficiencies" in Ola Electric’s products and services. This follows findings that many consumer complaints remained unresolved despite the company’s claims of addressing 99 per cent of grievances.
“We have ordered a detailed investigation into complaints of deficiencies in services and products by Ola Electric. We want to ensure that the companies concerned must address consumer grievances properly and expeditiously,” consumer affairs secretary and CCPA chief commissioner Nidhi Khare said previously.