Key Points:
- Ola Electric to lay off over 1,000 employees and contract workers
- Shares hit 52-week low, down 66% from post-listing peak
- Second round of layoffs in four months; affects 25% of workforce
- Company automating operations to cut costs and improve efficiency
- February sales of 25,000 units fall short of 50,000 target for EBITDA breakeven
New Delhi: Ola Electric Mobility Ltd, once the darling of India’s EV market, is facing a harsh reality check. The company is set to lay off more than 1,000 employees and contract workers in a desperate bid to stem mounting losses. This move comes as Ola’s shares plummeted to a 52-week low, painting a grim picture for the SoftBank-backed electric scooter maker.
From IPO High to 52-Week Low
The company’s stock has been on a downward spiral since its high-profile IPO in August 2024. On Monday, Ola Electric’s shares crashed 5.36% to hit a fresh 52-week low of Rs 53.71 on the BSE. This represents a staggering 66% decline from its post-listing peak of Rs 157.53, highlighting the company’s struggle to maintain investor confidence.
Déjà Vu: Second Round of Layoffs
This latest round of job cuts comes just four months after Ola Electric laid off nearly 500 employees in November 2024. The current layoffs will affect multiple departments, including charging infrastructure, customer relations, procurement, and fulfillment. The cuts amount to over a quarter of Ola’s 4,000-strong workforce as of March 2024, including contract workers not counted in public disclosures.
Automation Drive: Cutting Costs, Boosting Efficiency
As part of its restructuring efforts, Ola is automating parts of its customer relations operations. The company aims to improve margins, reduce costs, and enhance customer experience while eliminating redundant roles. This strategy extends to front-end sales, service, and warehouse employees at Ola’s showrooms and service centers.
Market Share Slump: Missing the EBITDA Mark
Ola Electric’s market position has been slipping. In February 2025, the company sold over 25,000 units, capturing a 28% market share. However, this falls well short of the 50,000-unit monthly target CEO Bhavish Aggarwal had set as necessary for EBITDA breakeven. The company has lost ground to competitors like Bajaj Auto and TVS Motor, further complicating its path to profitability.
Looking Ahead: Challenges and Uncertainties
As Ola Electric navigates these turbulent waters, the company faces an uphill battle to regain market leadership and investor confidence. With mounting losses, increasing competition, and growing customer complaints, the road ahead looks challenging for the once-dominant electric scooter maker.
