Bengaluru, March 3: Bhavish Aggarwal-led EV firm Ola Electric will reportedly lay off 1,000 employees due to internal restructuring plans and business challenges. The layoffs will help the company control mounting losses. With the latest round of job cuts, the Bengaluru-based EV firm will focus on profitability while optimising its operations.

The reports said that Ola Electric, India's leading electric scooter maker, had struggled to keep up its employees. As per reports, the company had to witness the departure of people like Anshul Khandelwal and Suvonil Chatterjee. Both were top-level executives working as Chief Marketing Officer and Chief Technology and Product Officer, respectively. Ola Electric Laying Off 1,000 Employees and Contract Workers in Its 2nd Round of Job Cuts To Reduce Growing Losses: Reports.

Ola Electric has been struggling with its financial performance. The EV firm witnessed a 19.4% decline in revenue to INR 1,045 crore, and losses increased by 50% to INR 564 crore during Q3 FY25 (December 2024). The company has announced its second round of layoffs to cut the losses, which will affect employees and contract workers. 

Ola Electric will reduce its workforce ahead of the Ola Roadster X deliveries, which are expected in mid-March 2025. The company currently has around 4,000 employees. Previously, the company had slashed 500 jobs, which affected a major part of its workforce. However, the latest round will target cutting a quarter of the total headcount.

Ola Electric said it sold over 25,000 electric scooters in February 2025, which suggested that the company had captured 28% of the market share. However, the government's VAHAN portal showed that only one out of three E-scooters were officially registered. Moreover, Bhavish Aggarwal's Ola Electric reportedly informed the investors about renegotiations to cut costs and improve the operational efficiencies that would impact the February vehicle registrations. Ola Electric Sales: Bhavish Aggarwal’s EV Firm Claims Selling 25,000 Scooters in February, VAHAN Website Shows 8,390 Registrations.

Ola Electric shares also dropped 60% from their IPO debut, showing poor stock market performance. Besides, the company had faced scrutiny over its sales service from consumer protection authorities and market regulators. 

(The above story first appeared on LatestLY on Mar 03, 2025 01:22 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).