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Ola Electric to lay off 1,000 to control losses: Report
The job cuts at Ola Electric may happen at multiple departments such as procurement, fulfillment, customer relations and charging infrastructure.
Ola Electric Mobility Ltd is laying off more than a thousand employees and contract workers, reports Bloomberg. The electric two-wheeler maker is looking to stem its losses, the report states.
HT.com cannot independently verify the accuracy of the information.
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The job cuts may come at multiple departments such as procurement, fulfillment, customer relations and charging infrastructure, according to the report.
This also marks the company's second layoff round in under five months as the Bhavish Aggarwal-led company sees a 50% surge in losses for the December quarter and has also come under the sights of the consumer protection authority recently.
The previous round saw around 500 employees being let go last November, the report read.
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Ola is also automating parts of its customer relations operations and the layoff plans may even change over time as per business needs.
Though it used to be the market leader, the company is also losing market share with Bajaj Auto Ltd and TVS Motor Co overtaking it in December, according to the report.
The company had also informed investors a few days earlier that its vehicle registrations will get impacted in February as it renegotiates terms with two of its vendors to reduce costs and improve efficiencies, the report read.
How did Ola Electric shares perform?
Ola Electric Mobility Ltd shares dropped 3.25 per cent on the Bombay Stock Exchange (BSE) at 1:25 pm IST, trading at ₹55, which was a drop of ₹1.85. Its shares have fallen over 60% from its peak since its blockbuster IPO debut in August.
