Ola Electric Mobility, backed by the SoftBank Group, is reportedly planning to lay off over 1,000 employees and contractual workers as part of its efforts to address financial losses. The layoffs are expected to affect various departments, including public procurement, fulfillment, customer relations, and charging infrastructure.
This move marks the second round of workforce reductions in less than five months, following the company’s decision to cut 500 jobs in November. The latest decision comes amidst a 50% increase in losses for the December quarter and scrutiny from Indian regulatory bodies, including the Consumer Protection Authority and market regulators.
According to a Bloomberg report, the new wave of layoffs will impact more than a quarter of Ola’s total workforce, which is estimated at around 4,000 employees, including contractual workers whose numbers are not publicly disclosed. As part of its restructuring efforts, Ola is automating certain aspects of its customer relationship operations.
In an official statement, Ola said, “We have restructured and automated our front-end operations, leading to improved margins, reduced costs, and enhanced customer experiences, while eliminating redundant roles for greater productivity.” This automation has also affected front-end sales and service staff at its showrooms and service centers.
Ola Electric’s stock has plummeted by more than 60% since its initial public offering (IPO) in August. In February, the company sold over 25,000 units, falling significantly short of its 50,000-unit target, which is a key benchmark for achieving EBITDA breakeven. Adjustments with suppliers have also impacted vehicle registrations as the company seeks to optimize costs and improve efficiency.
To address customer dissatisfaction, which had resulted in approximately 80,000 complaints per month, Ola Electric significantly expanded its presence by adding 3,200 stores in December. This expansion is part of a broader strategy to improve service and customer experience.
