New Delhi, November 22 (UITV)- Electric vehicle (EV) maker Ola Electric is planning to lay off at least 500 employees as part of its restructuring process. The company says that this step is being taken with the aim of increasing operational efficiency, reducing redundancy and improving profitability.
The Bhavish Aggarwal-led company has started the restructuring process, which will affect employees of several departments. According to various reports, this move of Ola Electric is being done to reduce the company’s growing losses and cut expenses. However, no set time frame has been set to complete this process.
A report by Inc42, citing sources, said that the layoffs are aimed at reducing expenses to “increase profitability and improve margins”. There is no set time period to complete the exercise.
Ola Electric has not yet made any official comment on this layoff.
- Advertisement -
Ola Electric has reported a net loss of Rs 495 crore in the recently concluded July-September quarter (Q2 FY25), which is 43 per cent higher than the loss of Rs 347 crore in the previous quarter (Q1 FY25).
At the same time, the company’s revenue also declined. Revenue declined to Rs 1,214 crore in the second quarter compared to Rs 1,644 crore in the first quarter of this financial year. This reflects a decline of 26.1 per cent quarter-on-quarter. However, the company’s loss has come down on a year-on-year basis.
Bhavish Aggarwal said in the quarterly earnings call that the company is working on reducing operating expenses. He said, “As we continue to increase the delivery of our products, revenue will increase, while operating expenses are likely to remain stable or decline over the next few quarters.”
The company’s market share also fell to 33 percent in the second quarter, from 49 percent in the first quarter.
Ola Electric, one of the leading companies in the electric two-wheeler segment in India, is currently facing severe financial pressure. Due to increasing losses, declining revenue and declining market share, the company is trying to increase profitability by cutting its expenses. However, this move to lay off employees can cause controversy and affect the company’s image.
Experts believe that the company should reconsider its strategies and focus not only on financial performance but also on the well-being of the employees.
