Ola Electric has revealed that it will be trimming its workforce by around 5% as part of a strategic restructuring aimed at cost optimisation and moving closer to long-term profitability. This decision affects employees across various functions and reflects broader changes in the company’s operational priorities.
The company said that increasing automation across front-end operations and streamlining processes are key elements of its plan to build a leaner organisation focused on speed and discipline.
Context: Ongoing Restructuring and Market Challenges
This latest round of layoffs is not the first for Ola Electric. The company has already undergone significant internal restructuring in recent years, including:
- In March 2025, it cut over 1,000 jobs across sales, service and distribution divisions.
- In November 2024, it laid off around 500 employees as part of earlier efficiency measures.
The repeated workforce reductions reflect persistent challenges including falling sales volumes, market share losses to competitors, and mounting pressure to improve margins.
Reasons Behind the Cuts
According to company statements and industry reports, the workforce reduction is part of a bid to:
- Enhance automation in key customer-facing and operational areas to improve efficiency.
- Improve customer experience by deploying more technology solutions and faster service responses.
- Strengthen financial health by reducing redundancies and recurring operating costs.
The push towards automation and streamlined operations is meant to create a more resilient and profitable business model as Ola Electric navigates a highly competitive electric two-wheeler landscape.
Competitive Pressure and Financial Performance
Despite an early lead in the Indian electric scooter market, Ola Electric has struggled with declines in sales and market share over the past year. Rivals such as Ather Energy, TVS Motor, and Bajaj Auto have expanded distribution and launched competitive models, intensifying competition.
The company has also seen leadership turnover and strategic shifts as it works to pivot from rapid growth to sustainable profitability.
What This Means for the EV Sector
Ola Electric’s layoffs are part of a broader trend within the Indian startup and electric mobility sectors, where companies are cutting staff to manage costs, adapt to changing market dynamics and invest in technologies like automation. Analysts say such moves might help firms maintain competitiveness, but also reflect harder market realities as investor expectations and consumer demand evolve.
