Ola Electric, India’s pioneer electric vehicle manufacturer, is once again in the news—and for not-so-very good reasons. The company, funded by SoftBank, is said to be terminating employment of over 1,000 full-time and contractual employees. It is so doing due to its difficulties grappling with rising operating losses and shaky market standing.
Why the Layoffs?
Ola Electric is in a rough spot. Losses are piling up, and the company is trying to stop the bleeding. According to the Business Standard, Ola’s net loss for the December 2024 quarter jumped to Rs 564 crore, up from Rs 376 crore the year before. That’s a 50% increase. Revenue also dropped by 19.4% to Rs 1,045 crore. With numbers like these, it’s no shock they’re tightening the belt.
- Departments Hit Hard: The layoffs are slashing jobs in procurement, customer relations, and charging infrastructure, among others.
- Second Round in Months: This isn’t even the first cut. Ola let go of about 500 workers back in November 2023, meaning this is round two in less than five months.
The company says it’s all part of a “restructuring effort.” A spokesperson told, “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.” Sounds like a corporate lifeline, but it’s tough to hear if you’re one of the 1,000 losing their jobs.
What’s Going Wrong?
Ola’s troubles aren’t just about money. The company’s facing heat from all sides. Customers have been vocal about lousy after-sales service, and regulators are sniffing around too. The Central Consumer Protection Authority is digging into over 10,000 complaints. Plus, competition is fierce. Bajaj Auto and TVS Motor are closing in with cheaper, newer models, pushing Ola down to third place in electric scooter sales last December.
- Stock Plummet: Ola’s shares have tanked over 60% since its hyped-up IPO in August 2024. Rough ride for investors!
- Market Share Slip: Even though Ola sold 25,000 scooters in February 2025, grabbing a 28% market share, it’s nowhere near the 50,000 monthly target CEO Bhavish Aggarwal set to break even.
A Human Take on the Fallout
It’s hard not to feel for the workers caught in this mess. Over a quarter of Ola’s 4,000-strong workforce (as of March 2024) is getting the axe, and that’s not even counting contract folks who don’t show up in official numbers. Imagine the uncertainty—families wondering how to pay bills, especially in a growing industry that’s supposed to be full of promise.
On the flip side, Ola’s trying to adapt. They’re optimizing customer care and revamping logistics to save money. What is the cost? Losing brains for a sunrise sector like electric vehicles appears to be backward when India’s attempting to push green tech. I wonder constantly if it’s a Band-Aid solution that will hurt them in the long run. Ola Electric’s tale is a rollercoaster. They’re still a leader in India’s EV game, but the cracks are showing.
