Ola Electric, the Bengaluru-based electric vehicle (EV) manufacturing startup, has announced a significant round of layoffs, affecting over 1,000 employees and contract workers.
The layoffs come amid mounting financial challenges and increased competition in the EV market.
The layoffs have had a significant impact on Ola Electric’s workforce. The workforce stood at approximately 4,000 employees as of March 2024.
The current round of layoffs affects more than a quarter of the company’s staff, including contract workers who are not included in the company’s official employee count.
The affected departments include procurement, fulfillment, customer relations, and charging infrastructure.
Employees in sales, service, and warehouse roles at Ola’s showrooms and service centers are also being laid off. This is part of the company’s restructuring effort.
Reasons Behind the Layoffs at Ola Electric
Ola Electric’s decision to lay off over 1,000 employees is driven by the need to curb rising losses and streamline operations.
The company reported a 50% increase in losses for the December 2024 quarter.
Net losses widened to Rs 564 crore, up from Rs 376 crore in the same period the previous year.
The layoffs affect multiple departments, including procurement, fulfillment, customer relations, and charging infrastructure.
This marks the second round of job cuts in less than five months, following a previous reduction of around 500 employees in November 2024.
As part of its restructuring efforts, Ola Electric is automating parts of its customer relations operations to improve margins and reduce costs.
This move is also aimed at enhancing the customer experience.
The company has restructured and automated its front-end operations, eliminating redundant roles for better productivity.
This move is expected to deliver improved margins and reduced costs while enhancing the overall customer experience.
The restructuring also affects front-end sales, service, and warehouse employees at Ola’s showrooms and service centers.
Financial Challenges and Market Competition
Ola Electric has been grappling with significant financial challenges. These include a decline in revenue and increased competition in the EV market.
The company’s revenue for the December quarter declined by 19.4% to Rs 1,045 crore.
Shares of Ola Electric have fallen more than 60% since their peak following its stock market debut in August 2024.
The company has faced growing consumer complaints, social media criticism, and scrutiny from India’s market regulator and consumer protection authorities.
Ola Electric sold over 25,000 units in February 2025. However, this fell short of the 50,000-unit monthly target set by CEO Bhavish Aggarwal.
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