Ola Electric Mobility, India’s leading electric two-wheeler manufacturer, is laying off approximately 1,000 employees across various functions as part of a restructuring effort to stem mounting financial losses. This marks the company’s second significant workforce reduction in five months, following a cut of around 500 jobs in November 2024. Sources familiar with the matter indicate that departments such as procurement, fulfillment, customer relations, and charging infrastructure will bear the brunt of these layoffs.

An Ola Electric spokesperson declined to confirm the exact number of job cuts but acknowledged the restructuring, stating, “We have restructured and automated our front-end operations, delivering improved margins, reduced costs, and enhanced customer experience while eliminating redundant roles for better productivity.” The move aligns with strategic shifts aimed at boosting EBITDA margins by nearly 10 percentage points, optimizing inventory, and speeding up deliveries. The company has eliminated regional warehouses, relying instead on its 4,000 retail stores for inventory and last-mile logistics, while renegotiating vendor contracts to cut costs further.

The layoffs come amid financial strain, with Ola reporting a consolidated net loss of Rs 564 crore in the December 2024 quarter—up from Rs 376 crore a year earlier—driven by a 19.4% revenue drop to Rs 1,045 crore and costs to address service issues. Facing intensified competition from rivals like Bajaj Auto and TVS Motor, Ola has also been under scrutiny from the Central Consumer Protection Authority (CCPA) over service complaints. While the company claims to have resolved 99.1% of 10,644 CCPA-reported issues, additional documentation was requested in January 2025.