Ola Electric To Cut Over 500 Jobs In Major Restructuring
This reduction represents over 12% of the company’s current workforce of around 4,000
Ola Electric is undergoing a significant restructuring that will impact more than 500 employees across different departments, according to media reports. This reduction represents over 12 per cent of the company’s current workforce of around 4,000.
"This restructuring has been in progress for several months and is expected to wrap up by next month," said a source familiar with the changes. The purpose is to eliminate redundant roles, enhance operational efficiency, boost margins, and drive profitability.
This isn’t the first time Ola Electric has undergone a workforce reorganization. A similar restructuring took place in 2022 in anticipation of the company's Initial Public Offering (IPO).
Ola Electric’s IPO launched on 2 August 2024, with subscriptions closing on August 6, 2024. The company debuted on the BSE and NSE on August 9, 2024.
The first financial report following the IPO, for the quarter ending June 30, 2024 (Q2 FY25), showed strong financial performance. The company posted a 38.5 per cent increase in revenue year-on-year, reaching Rs 1,240 crore, driven by a 73.6 per cent increase in vehicle deliveries (98,619 units, compared to 56,813 units in Q2 FY24).
Despite this positive financial momentum, the current restructuring aims to optimise costs and ensure sustainable profitability in the long run.
