BENGALURU, India (Kashmir English): India’s top electric two-wheeler maker by sales, Ola Electric Mobility, is laying off over 1,000 employees and contract workers as it seeks to prioritise profitability.
According to a report published in Bloomberg News, this is the second round of layoffs for the SoftBank-backed company in five months.
Citing people familiar with the matter, the report said, the company had cut about 500 jobs in November, which had left it with 3,824 employees as of December 31, 1.8% lower than in 2023. The data was shared by market intelligence platform Tracxn.
According to Bloomberg report, the latest job cuts span multiple departments, including customer relations, procurement, fulfillment, and charging infrastructure.
Ola Electric offers heavy discounts
The company has yet to turn a profit as costs remain high and as it offers heavy discounts to lure customers.
Bloomberg said in a bid to reduce costs and revamp its logistics and delivery strategy, front-end sales, service and warehouse staff at the company’s showrooms and service centres across the country are also being laid off.
Ola Electric’s stock fell just under 5% to a session-low of 54.05 rupees after the report. It has now lost 30% since the company went public on August 9.
Ola Electric Mobility which deals in electric vehicle manufacturing at the country level is a subsidiary of Ola Cabs, a popular ride-hailing company in India.
Founded in 2017, the company aims to revolutionize the country’s Electric Vehicle market by providing accessible, affordable and sustainable mobility solutions.
The company has already made significant strides in the country’s EV market.
In 2020, it launched its first electric scooter, the Ola S1, which rapidly gained popularity due to its sleek design, affordable pricing and impressive range.
The EV manufacturers has also established a robust charging infrastructure network across the country, making it easier for customers to charge their vehicles on the go.
