Ola Electric is once again under scrutiny. The Bengaluru-based electric vehicle (EV) startup frequently finds itself making headlines, often for negative reasons. Recently, reports suggest that the company is planning to lay off over 1,000 payroll employees and contract workers as part of its effort to reduce losses. However, Ola Electric has yet to officially confirm these claims.
Layoffs at Ola
As reported by Bloomberg, the SoftBank-backed company intends to cut jobs in various departments such as procurement, fulfillment, customer relations, and charging infrastructure. This isn’t the first time Ola Electric has faced mass layoffs. In November, unverified reports indicated that the company let go of 500 employees. If the current layoffs proceed, they could affect more than a quarter of Ola’s workforce, which was 4,000 employees as of March 2024.
Recently, Ola Electric reported a 50% increase in losses for the December quarter, following its public listing on the Bombay Stock Exchange (BSE) last year. The company’s stock has dropped over 60% from its peak since its IPO debut in August. The decline in value has been attributed to several issues, including reports of electric scooters catching fire, customer complaints, and backlash on social media over poor service quality.
As part of a broader restructuring plan, Ola Electric is automating parts of its customer relations operations. The layoffs could be adjusted over time, depending on the company’s evolving business needs. Sources also suggest that front-end sales, service, and warehouse staff at Ola’s showrooms and service centers are being let go as part of the company’s effort to cut costs by revising its logistics and delivery strategies.
Ola Electric’s Struggles and Sales Performance
In February 2025, Ola Electric reported selling over 25,000 units, capturing 28% of the market share. However, this is significantly lower than the 50,000-unit monthly target set by CEO Bhavish Aggarwal earlier this year, highlighting ongoing challenges for the company in a competitive market.
Last month, Ola Electric introduced its first electric motorcycle, the Roadster X, starting at Rs 74,999 ex-showroom. The company confirmed that deliveries will begin in March. The Roadster X series is available in three variants: the X for Rs 74,999, the X+ 4.5 kWh for Rs 1,04,999, and the X+ 9.1 kWh for Rs 1,54,999, all ex-showroom prices.
