Ola Electric, India’s top electric two-wheeler maker by sales, said on Monday it is eliminating some roles due to restructuring and automation, with Bloomberg News pinning the number at over 1,000, amid the company’s push for profitability.
“We have restructured and automated our front-end operations delivering improved margins, reduced costs and enhanced customer experience while eliminating redundant roles for better productivity,” an Ola spokesperson told Reuters by email but declined to comment on the number of impacted roles.
Earlier in the day, Bloomberg News said the moves would impact over 1,000 employees and contract workers and span multiple departments, including procurement, fulfillment, customer relations and charging infrastructure.
Front-end sales, service and warehouse staff at Ola’s showrooms and service centres are also being laid off, the report said, citing people familiar with the matter.
This will be the second round of layoffs in five months at Ola, whose struggles with high costs, dwindling demand and deep discounts to attract customers have kept it from turning a profit.
It had cut about 500 jobs in November, according to media reports, leaving it with 3,824 employees as of December 31, 1.8% less than in 2023, according to data from market intelligence platform Tracxn.
Ola’s stock ended 3% lower on the day. It has lost about 40% since the company went public on August 9.
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