Ola Electric to lay off 500 employees in restructuring move
Ola Electric is preparing to lay off over 500 employees across different roles as part of a restructuring plan, according to Moneycontrol. The Bhavish Aggarwal-led company's objective with this move is to improve its profit margins and become profitable. This development follows Ola Electric's sister company, Ola Consumer, announcing a restructuring plan some months ago, impacting at least 10% of its workforce.
A look at previous restructuring efforts
Notably, this isn't the first time Ola Electric has taken such a step. Ahead of its IPO in September 2022, the company conducted two restructuring exercises and announced several new hires to centralize and unify operations across verticals. In July 2022, Ola Electric also undertook a massive reorganization plan, laying off around 1,000 employees when it shut down three of its businesses: Used Cars, Cloud Kitchen, and Grocery delivery.
Shift in focus and hiring plans
The shuttering of the three businesses was part of Ola Electric's strategic pivot to focus on its EV business. Even though the company laid off nearly 1,000 employees from these verticals, it had planned to hire around 800 employees specifically for its EV business. This highlighted the firm's commitment to fortifying its position in the electric vehicle space.
Financial performance and delivery growth
Ola Electric recently revealed its Q2 FY25 results, reporting a 38.5% YoY revenue growth to ₹1,240 crore. This growth was largely fueled by a jump in deliveries, which increased by 73.6% YoY from 56,813 units to 98,619 units in Q2 FY25. The impressive delivery figures highlight the company's expanding presence in the EV market, though challenges persist with after-sales service.
