Ola Electric Layoffs: EV Maker To Lay Off Around 400–500 Employees in Restructuring Process; Check Details
Ola Electric plans to lay off around 400-500 employees across various departments to streamline operations amidst challenges in the EV sector, as part of a strategy to manage costs.
New Delhi, June 3: Ola Electric, the electric vehicle (EV) maker, is planning significant layoffs. The company is expected to lay off around 400-500 employees as part of its restructuring process. Ola Electric, known for its popular electric scooters, has been facing various challenges in the competitive EV sector. The decision to reduce its employees is anticipated to affect across different departments. The layoffs might be a part of Ola Electric's strategy to streamline its operations.
As per a report of Economic Times, Ola Electric plans to cut 400-500 employees to improve its financial performance and operational efficiency. The company is reducing its workforce in an effort to lower operating expenses as it prepares for its initial public offering, led by its founder, Bhavish Aggarwal. The step is seen as a way to manage costs and ensure the company stays competitive in the fast-growing EV industry. Ola Electric Captures 49% of Market Share in Electric Two-Wheeler Segment in May With 37,191 Registrations.
Some of the employees to be affected by the layoffs may be replaced with new employees who can be hired at a lower salary compared to the previous staff. This could allow the company to reduce labour costs by bringing in new employees to fill certain roles rather than retaining the more experienced and higher-paid staff.
Ola Cabs recently laid off approximately 200 employees in April. The layoffs were part of a cost-cutting initiative for streamlining operations. In May, the company recorded sales figures, selling over 37,000 electric scooters. However, the company's financial performance has been mixed. In the fiscal year 2023, Ola Electric reported a net loss of Rs 1,472 crore on an operating revenue of Rs 2,631 crore. Layoffs 2024: Malaysia-Based Media Chinese To Reduce 44% of Its Workforce and Use AI To Save Costs and Monetise Digital Content.
The loss highlights the challenges faced by the company in establishing a profitable business model in the competitive electric vehicle sector. Bhavish Aggarwal has set ambitious goals for both Ola Electric and Ola Cabs. He aims to achieve profitability for companies as they approach their initial public offerings (IPOs).
(The above story first appeared on LatestLY on Jun 03, 2024 09:47 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).