Ola Electric Mobility Ltd, led by Bhavish Aggarwal, is laying off more than 1,000 employees and contract workers in an effort to curb rising losses, according to a Bloomberg report. The job cuts affect multiple departments, including procurement, fulfilment, customer relations, and charging infrastructure, as the electric two-wheeler (2W) maker undergoes a major restructuring.
This marks the company’s second round of job cuts in less than five months. In November 2024, Ola Electric laid off around 500 employees, and the latest round of dismissals accounts for over a quarter of its reported 4,000-strong workforce as of March 2024. However, this figure does not include contract workers, who are not accounted for in the company’s official disclosures. A company spokesperson confirmed the restructuring to Bloomberg, stating that Ola had “automated front-end operations to improve margins, reduce costs, and enhance customer experience while eliminating redundant roles for better productivity.” However, they did not specify the number of employees affected.
The layoffs come as SoftBank-backed Ola Electric grapples with multiple challenges. The company’s net loss widened to Rs 564 crore in the December 2024 quarter, up from Rs 376 crore in the same period the previous year. Shares of Ola Electric have fallen more than 60 per cent since their peak following its stock market debut in August 2024. The company has also faced growing competition, slipping from its position as India’s top electric scooter seller. Government data from December 2024 showed that Bajaj Auto Ltd had overtaken Ola Electric as the market leader, with TVS Motor Co also surpassing it. Despite these setbacks, Ola Electric maintains it remains a leading player.
In February 2025, the company reported sales of over 25,000 units, securing a 28 per cent market share. However, this is well below the 50,000-unit monthly sales target that Aggarwal had set to achieve breakeven in earnings before interest, tax, depreciation, and amortisation (Ebitda). As part of its restructuring, Ola is automating parts of its customer relations operations and revamping logistics and delivery strategies to cut costs. Employees in sales, service, and warehouse roles at its showrooms and service centres are also being laid off.