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Ola Electric Lays Off Over 1,000 Employees Amid Struggling Profits and Rising Competition
Ola Electric, one of the leading electric scooter manufacturers in India has laid off over 1000 employees in the restructuring process to reduce rising costs and losses. So far, layoffs across the different departments have affected rules relating to procurement, customer relations and charging infrastructure. This is the second time that jobs had been cut in five months, the first cut being in November 2024, where 500 employees were laid off.
The restructuring seeks to enhance margins, lower costs and provide a better customer experience through automation. Nevertheless, the layoffs account for more than a quarter of Ola’s 4,000 employees not including contract workers. Ola’s representative confirmed the restructuring, stating that the company is in line with removing redundant positions for better productivity.
Despite these initiatives, Ola Electric has been struggling by rising losses. The net loss of the company jumped by 50% during the December 2024 quarter to Rs 564 crore. In February 2025 Ola registered sales of 25,000 units taking a 28% market share but still way too short of its break-even target of 50,000 units. At the same time, competitors ‘Bajaj Auto’ and ‘TVS Motor’ have increased and led Ola losing its leadership position in the electric scooter segment by the very end of December 2024.
Ola Electric also encountered customer complaint problems with some reports indicating as many as 80,000 complaints monthly. The company increased more retail stores to resolve service issues but still has massive challenges in the pursuit of profitability.
Ola Electric’s restructuring indicates the rough path to follow as the company struggles financially and with tough competition in the fast expanding electric vehicle space.
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