Ola Electric, the electric two-wheeler startup led by Bhavish Aggarwal, has laid off around 1,000 workers in the marketing, sales, and distribution divisions as a result of a significant internal restructuring effort.
The company is figuring out what needs to be reorganized. According to people acquainted with the matter, a number of workers were let go, and a number of distribution networks on the ground were shut down.
Ola Electric acknowledged that restructuring had taken place, although it did not specify the number of jobs that were impacted.
Ola Electric spokesperson said, “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 move comes after a similar downsizing that affected at least 500 employees in November 2024.
The latest restructuring coincides with several high-level departures. In December 2024, both chief technology officer Suvonil Chatterjee and chief marketing officer Anshul Khandelwal resigned.
Ola Electric has undergone multiple phases of reorganization in recent years. In September 2022, the company streamlined operations and hired a number of new employees in anticipation of its first public offering. However, recent layoffs suggest a shift in approach as the business struggles in the competitive EV sector.
Industry sources speculate that the purpose of these layoffs may be to improve financial efficiency as Ola Electric is ready to expand in the future despite changing market conditions.
Ola Electric revealed its December quarter results on February 7, indicating that its losses had grown compared to the same time last year.
The company’s net loss this quarter was Rs 564 crore, as opposed to Rs 376 crore in the same quarter the previous year. The December quarter’s revenue was Rs 1,045 crore, a 19.4% drop from the year before.
Tired of guessing stocks to trade in daily?
Unicorn Signals empowers you with powerful tools like daily stock scans for Intraday, Swing & Investing, Market Predictions and much more. Download the Unicorn Signals app today and take control of your investments!