Ola Electric is undertaking a restructuring exercise which would impact 500 employees across departments and levels
The Bhavish Aggarwal-led company is aiming to improve its operational efficiency by reducing redundancies in order to turn profitable
Ola Electric posted a net loss of INR 495 Cr in the second quarter of the ongoing fiscal year
Amid concerns about its losses and after-sales service woes, electric two-wheeler manufacturer Ola Electric plans to cut its workforce by about 500.
The restructuring exercise will impact employees from across departments and levels, sources told Inc42.
The Bhavish Aggarwal-led company is aiming to improve its operational efficiency by reducing redundancies in order to turn profitable, the sources added.
“The exercise is currently ongoing and will impact employees across departments. The aim is to cull expenses to drive profitability and improve margins. There’s no set time period for the completion of the exercise,” one of the sources said.
The development was first reported by Moneycontrol.
Ola Electric posted a net loss of INR 495 Cr in the second quarter of the ongoing fiscal year (Q2 FY25). While loss narrowed 5.5% on a year-on-year (YoY) basis, it rose 43% from INR 347 Cr in Q1 FY25.
In its investor presentation for the quarter, Ola Electric said it would focus on improving its bottom line by investing in margin gains.
In a post-earnings call, founder and CEO Aggarwal said that the company expects to keep its operating expenses “flat or maybe slightly lower” over the next couple of quarters.
“As we continue to scale distribution… so revenue keeps growing and operating expenses will largely be flat or probably even down over the next couple of quarters,” he said.
As per its red herring prospectus, Ola Electric had over 4,000 on-roll employees at the end of FY24. The company spent INR 139 Cr on its employees in Q2 FY25, up 13% quarter-on-quarter and 23% YoY.
(The story will be updated shortly.)
