Restructuring Push: Ola faces a workforce cut of 12%, around 500 workers due to staggering losses
Ola Electric Mobility will soon restructure and possibly even let go of half a thousand employees, which in proportion to its total number of employees means that this amounts to 12%. This decision has occurred while the company is trying to reorganise itself and look for ways of cutting costs which are highly irrational as the company is loss-making.
The decision is like a step the company took in 2022 before it went for IPO – Initial Public Offering. At that time, Ola Electric had dismissed one thousand workers and had closed three segments, including Used Cars, Cloud Kitchen, and Grocery Delivery to wholly concentrate on the EV business organization. However, at the same time, the company also said that it has plans to hire 800 people for the EV division to enhance the segment.
The most recent dismissals happen against the backdrop of integrating an operating loss of Rs 495 crore for the second quarter of the financial year 2024-25. This loss means a gain of 5.53 % over the ₹ 524 crore loss made in the same quarter of the previous financial year.
This loss has been reduced by 5. 53 % compared to the ₹ 524 crore loss in the same quarter of the previous year. It is indicative of a fundamental operating challenge that the company continues to contend with.
Ola Electric, in July 2022, joining the trend of restructuring, sacked its employees and opted for centralization. It also sought new talent to recruit talented personnel to boost its workforce with the laid EV-focused strategy. In the same way, in September 2022, the company recruited new talent to align the organization’s business activities.
These layoffs come after further downsizing of Ola’s businesses and personnel. Ola Consumer discharged 10% of their workers in March 2024, and the CEO of Ola Cabs, Hemant Bakshi, has also resigned. It follows a trend of cost-cutting as the company ends strategic plans to achieve its dreams of the production of electric vehicles.
Currently, Ola Electric has not come out to confirm the layoffs but the layoffs showcase the company’s struggles to make its operations in the competitive and capital-intensive EV market.