Ola Electric, the leading electric two-wheeler manufacturer in India, is reportedly preparing to reduce its workforce. According to recent reports, the company plans to lay off approximately one thousand employees and contract workers. This decision comes amidst a noticeable slowdown in sales.
The move to reduce staffing appears to be part of a broader strategy aimed at boosting profitability. The Bloomberg report indicated that the job cuts will impact multiple departments, including procurement, fulfillment, customer relations and charging infrastructure. It also mentioned potential reductions in front-end sales, service, and warehouse staff at showrooms and service centers.
This is not the first time Ola Electric has reduced its workforce. Last year, the company already laid off around 500 employees. The company, which had its IPO last year, is currently experiencing a slowdown in sales. Despite this, Ola Electric has managed to maintain a 28% market share in the electric two-wheeler segment, even with a sales decline of over 25% in February.
The job cuts announced are the second round of layoffs to hit the company’s employees, according to reports. The SoftBank-backed EV maker had reduced its workforce last year already. By the end of last year, the company had 3,824 employees, a decrease of nearly two percent from the previous year.
Beyond the sales slowdown, Ola Electric is also grappling with high operating costs and struggles to achieve consistent profitability four years after its debut. The company continues to offer significant discounts on its electric scooters.
