Ola Electric Firing 100 Employees Every Friday Since Last 60 Days


Sheetal Bhalerao

Sheetal Bhalerao

Nov 26, 2024



In an attempt to shore up profitability, Ola Electric Mobility Ltd. has laid off 100 employees every week since its service-related woes came to the fore nearly two months ago, said the people aware of the development.

Ola Electric Firing 100 Employees Every Friday Since Last 60 Days

Ola Going Through Turbulent Time 

It appears that Bhavish Aggarwal led  Ola Electric, is undergoing a turbulent phase which is mainly affected by layoffs, financial struggles, and intensified scrutiny from authorities. 

The company appears to be all set to cut around 500 jobs across various departments as suggested by the report.

This is part of a restructuring initiative aimed at improving operational efficiency and driving profitability.

Further, these layoffs are designed to eliminate redundancies and optimize costs amid a challenging market environment, said the industry insiders.

Moving ahead, these restructuring efforts by Ola Electric, though lacking a defined timeline, underscores the company’s bid to stabilize margins. 

Please note here that the company has yet not confirmed the news of layoffs officially as it did not provide any specific details about the departments affected.

Facing Revenue Loss

When it comes to the revenue, the company has reported a 43% increase in its net loss for the July-September quarter (Q2 FY25), amounting to ₹495 crore compared to ₹347 crore in the previous quarter. 

It seems that the company’ revenue also took a hit, declining 26% to ₹1,214 crore from ₹1,644 crore in Q1 FY25.

Interestingly Aggarwal emphasized during the post-earnings call that operating expenses had decreased quarter-on-quarter, suggesting the company is focusing on cost efficiency as a pathway to recovery despite these setbacks.

Adding, “As we continue to scale distribution, revenue will grow while operating expenses remain stable or decrease.”

Besides this, there is also a reduction in Ola Electric’s market share in the electric two-wheeler segment, it has dropped from 49% in Q1 FY25 to 33% in Q2. 

The factors such as Increased competition and service network issues have been cited in significantly contributing to this decline.

In addition to this, the consumer complaints regarding software glitches, battery performance, and mechanical failures like jammed tyres have further affected this condition.

Concerning the consumer grievances, the Central Consumer Protection Authority (CCPA) has initiated a probe into the company’s practices.

Now, all eyes are set on the company as they concern how it addresses these challenges and charts a path toward recovery during these turbulent times.


Sheetal Bhalerao
Sheetal Bhalerao
  • 817 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online