Ola Electric Mobility, backed by SoftBank Group Corporation, is reportedly laying off more than 1,000 employees and contract workers in its second round of job cuts within five months.
The move comes as the company grapples with mounting losses and intensifies its cost-cutting efforts.
According to reports, the latest layoffs are taking place across multiple departments, including procurement, fulfillment, customer relations, and charging infrastructure.
The company is also automating parts of its customer relations operations, which has resulted in the elimination of several front-end roles.
Additionally, Ola Electric is letting go of showroom, service center, and warehouse staff as part of a revised logistics and delivery strategy.
In November 2024, Ola Electric had laid off around 500 employees in a similar cost-cutting measure.
The current layoffs account for over 25% of the company’s total workforce, which stood at approximately 4,000 at the end of March 2024.
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Contract workers, who are not included in the company’s public workforce disclosures, are also affected by the downsizing.
Ola Electric, which went public in August 2024, has faced a series of challenges, including increased losses and regulatory scrutiny.
The company reported a 50% rise in losses for the December quarter (Q3). Additionally, shares of Ola Electric have plummeted more than 60% from their peak following its IPO debut.
Despite the financial setbacks, Ola Electric reported selling over 25,000 units of its electric scooters in February 2025, securing a 28% market share.
However, data from the government’s VAHAN portal indicated that only one out of three Ola Electric scooters sold last month was officially registered.
The company has attributed the dip in vehicle registrations to ongoing renegotiations with two key vendors aimed at reducing costs and enhancing operational efficiencies.
A spokesperson for Ola Electric confirmed the restructuring efforts, stating,
“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.”
However, the company has not officially disclosed the exact number of employees impacted in this round of layoffs.
