Ola Electric cuts over 1,000 jobs as losses widen

MUMBAI: Ola Electric is cutting several jobs as the startup attempts to check costs and stem its losses, sources said. Over 1,000 employees and contract workers across departments including fulfilment, distribution and customer relations have been impacted by the move. The company did not comment on the number of affected jobs but said that it has undertaken a restructuring exercise and automated few processes, resulting in redundancies.

The fresh layoffs come less than four months after the firm let go of 500 employees in a similar restructuring drive. Ola Electric, which got listed on the bourses last year, saw its consolidated losses widen to to Rs 564 crore in the Dec quarter from Rs 376 crore in the year-ago period.

"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," a company spokesperson said.

Revenue from operations declined to Rs 1,045 crore in the quarter from Rs 1,296 crore in the year-ago period. "Ola Electric has expanded its store count, covering large parts of the country. As a result, the footprint of its warehouses and distribution centres have shrunk, leading to some of the job losses," a source said.

Bhavish Aggarwal-led Ola Electric, which competes with players like Bajaj Auto, TVS Motor and Ather Energy, had recently also come under the scanner of the consumer protection authority over complaints of deficiencies in services and products of the company. The startup has seen a series of senior-level departures in recent months with its chief technology and chief marketing officers quitting in Dec. The stock price of Ola Electric has dropped more than 60% from its peak since its listing in August 2024.