Ola Electric Said To Cut Over A Thousand Jobs To Stem Losses

Ola Electric Mobility Ltd. is set to lay off more than 1,000 employees and automate several operations as part of a restructuring effort aimed at reducing costs. This decision comes as the company faces growing losses and a decline in market share, signaling a major shift for one of India’s leading electric scooter manufacturers. The latest round of layoffs, affecting various departments, marks the second such move in less than five months at the SoftBank-backed company.

Key Areas Affected by the Job Cuts

The layoffs will affect a range of departments, including procurement, fulfillment, customer relations, and charging infrastructure. Sources familiar with the matter, who requested anonymity due to the private nature of the information, confirmed that both employees and contract workers would be impacted. This restructuring follows a series of financial setbacks, including a 50% increase in losses for the December quarter.

A Company Under Pressure

Ola Electric, led by Bhavish Aggarwal, has faced multiple challenges recently, with mounting losses and regulatory scrutiny. The company was also censured by India’s market regulator and consumer protection authorities in recent months. Despite these hurdles, Ola Electric continues to push forward with its goal of maintaining a dominant position in India’s growing electric vehicle market.

Impact on the EV Industry

Ola Electric’s restructuring highlights the broader financial pressures faced by companies in the electric vehicle (EV) sector, especially as they work to scale production and expand market share. While the layoffs may help the company stem its losses, it underscores the difficulties many EV companies face in the competitive market.

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