Bhavish Aggarwal-led electric two-wheeler maker Ola Electric has initiated a major internal restructuring exercise, leading to the layoff of around 1,000 employees across sales, distribution and marketing departments, sources told Moneycontrol.
The company is identifying areas where restructuring is needed. Some on-ground distribution networks were shut down and several people there were let go," sources close to the development told.
Bloomberg was the first to report that Ola Electric is laying off over a 1,000 employees and contract workers.
While Ola Electric did not confirm the number of employees impacted, the firm said that there has been restructuring.
"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," Ola Electric spokesperson told in response to Moneycontrol's queries.
This move comes after a similar downsizing in November 2024, which affected at least 500 employees.
The latest restructuring also comes amid a series of top-level exits. In December 2024, Chief Marketing Officer Anshul Khandelwal and Chief Technology Officer Suvonil Chatterjee resigned from their roles.
Ola Electric has undergone multiple restructuring phases in recent years. In September 2022, ahead of its IPO, the company streamlined operations while making a series of new hires. However, recent layoffs indicate a strategic shift as the firm navigates challenges in the competitive EV market.
Industry sources suggest these job cuts could be aimed at improving financial efficiency as Ola Electric gears up for future growth amid evolving market dynamics.
Ola Electric reported its December quarter results on February 7, where its losses widened compared to the same quarter last year.
The firm's net loss for the quarter stood at Rs 564 crore, which was wider than the loss of Rs 376 crore during the same quarter last year. Revenue for the December quarter declined by 19.4 percent from last year to Rs 1,045 crore.
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