Bhavish Aggarwal-led Ola Electric is initiating a new restructuring exercise which is expected to affect over 500 employees across various roles within the organisation, according to sources familiar with the matter who spoke to Moneycontrol.
According to sources within the organization, the company is undertaking the layoffs to improve its margins in its efforts to attain profitability.
The firm undertook two restructuring exercise in September of 2022 ahead of its IPO where it announced raft of new hires, in a bid to centralise and unify operations across verticals.
In July 2022, A massive reorganisation plan was announced where it laid off around 1,000 employees when it shut down three of its businesses -- Used Cars, Cloud Kitchen and Grocery delivery, to focus on the EV business. While it laid off around 1,000 employees from the other business verticals, it had plans to hire around 800 employees for the EV business.
Also Read: Ola Electric rejigs roles to unify operations across roles; YS Kim gets larger role
The development comes seven months after Ola Electric's sister concern Ola Consumer made plans to undertake a restructuring exercise that will affect at least 10 percent of the staff. During the same time, Hemant Bakshi, the CEO of Ola Cabs, the ride-hailing arm of ANI Technologies also quit the firm.
Ola Electric announced its Q2 FY25 results earlier this month. The company reported an increase in its revenue by 38.5% YoY to ₹1,240 crore driven by increase in deliveries – which grew 73.6% YoY from 56,813 units to 98,619 units in Q2 FY25.
(Ola Electric could not be reached out for comments, the story will be updated with responses)
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