Ola Electric Plans 500 Job Cuts Amid Mounting Losses: Report

Bengaluru-based electric two-wheeler manufacturer Ola Electric is preparing to lay off approximately 500 employees as part of a company-wide restructuring effort amid growing challenges, including a government investigation and significant financial losses, according to media reports. 

The restructuring, which will affect multiple departments, comes as the Bhavish Aggarwal-led company seeks to enhance operational efficiency and improve its financial performance. When approached for comment, Ola Electric did not provide an immediate response regarding the layoffs.

The company's financial health has shown concerning signs, with its net loss expanding to ₹495 crore in Q2 FY25, marking a 43 per cent increase from ₹347 crore in the previous quarter. Revenue figures also paint a worrying picture, with a 26.1 per cent decline to ₹1,214 crore from ₹1,644 crore in Q1 FY25.

Adding to Ola Electric's troubles, customers have reported various technical issues, including problems with software, batteries, and tyre functionality. The situation has drawn regulatory attention, with the Central Consumer Protection Authority (CCPA) launching an investigation into the company's customer complaint-handling practices.