Ola has released shocking news that it has laid off 1,000 employees and contract workers. According to those who are aware of the situation, one of India’s leading electric scooter manufacturers is having difficulty recouping its losses. The cuts come as Ola Electric struggles with rising losses, falling market share, and a substantial stock price decline since its IPO last year.
Widespread Job Cuts Across Multiple Departments
The layoffs at Ola Electric are impacting numerous departments throughout the organization, creating ripple effects across the company’s operations. According to recent reports, the job cuts are targeting staff in procurement, fulfillment, customer relations, and charging infrastructure divisions. The current round of workforce reduction follows a previous layoff of approximately 500 employees that occurred in November 2023, indicating an acceleration of cost-cutting measures at the SoftBank-backed electric vehicle manufacturer.
These combined reductions represent a significant portion of Ola Electric’s total workforce, which stood at approximately 4,000 employees as of March 2024. The actual impact may be even more substantial as these figures do not include contract workers who are also affected but not counted in the company’s public employee disclosures.
Now it is the second time of layoffs in 5 months under Bhavesh Agarwal’s leadership, which just listed last August, battles crises on multiple fronts. The company experienced a 50% increase in losses during the December quarter and has faced criticism from India’s market regulator and consumer protection authority over the past few months.
Financial Pressures Driving Cost-Cutting Measures
Ola Electric’s decision to implement significant staff reductions comes amid considerable financial challenges that have intensified since the company went public. The electric vehicle manufacturer, which completed its initial public offering in August 2023, has reported troubling financial results in recent quarters that have raised concerns among investors and market observers.
Most notably, the company reported a 50 percent increase in losses during the December quarter, putting additional pressure on its already strained finances. This deteriorating financial performance has contributed to a dramatic decline in Ola Electric’s stock price, which has fallen more than 60 percent from its post-IPO peak. On March 3, 2025, following reports of the latest layoffs, Ola Electric’s shares fell an additional 5 percent, reaching a 52-week low of Rs 54.
Market Position Under Threat
Ola Electric is facing challenges to its market position within India’s competitive electric vehicle industry, other than its financial difficulties. Although once considered a market leader, the company has been losing ground to competitors such as Ather Energy, TVS iQube, and Bajaj Chetak. In February 2025, Ola Electric reported sales of over 25,000 units, which translated to a market share of approximately 28 percent. While this represents a significant portion of the market, it falls well short of the company’s internal target of 50,000 units per month—a figure that CEO Bhavish Aggarwal had previously indicated was necessary for achieving EBITDA breakeven.
Business Strategy Adjustment
Ola Electric’s workforce reduction reflects a substantial adjustment to its business strategy as it navigates its post-IPO reality. The company is simultaneously pursuing multiple initiatives beyond staffing cuts, including product diversification efforts. In February 2025, Ola Electric launched its first electric motorcycle, the Roadster X, with a starting price of Rs 74,999 (ex-showroom). This product launch represents an attempt to expand beyond its core electric scooter business into new market segments. The Roadster X series is available in three variants at different price points, with deliveries scheduled to begin in March. This product expansion occurs against the backdrop of operational contraction, illustrating the company’s complex position as it attempts to balance growth opportunities with immediate financial imperatives.
Official Company Statement Without Direct Attribution to Aggarwal
Ola Electric has released an official statement regarding the restructuring efforts, though this is not directly attributed to Bhavish Aggarwal himself. The company’s spokesperson stated in an emailed response: “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.” This statement acknowledges the restructuring but does not specify the exact number of employees affected by the layoffs.
The layoffs, affecting more than a quarter of its workforce, reflect the severity of the company’s current situation as it grapples with mounting losses, declining market share, and scrutiny from both investors and regulators. As the company implements automation and restructures its operations, the effectiveness of these cost-cutting measures in achieving financial stability remains to be seen.
