Ola Electric to trim 5% workforce as loss-making EV maker tightens costs

Indian electric two-wheeler maker Ola Electric Mobility Ltd on Friday announced it will cut around 5% of its permanent workforce. This would equate to approximately 150–175 employees.In a statement, the company said this round of layoffs is as part of a structural reset focused on automation and front-end operational efficiency.
According to company’s annual report for FY24-25, its total permanent headcount is about 3,500, making the targeted reduction in the low-to-mid hundreds.
The company also said that this move is aimed at improving speed of service and sharpening profitability after a challenging financial period.Ola Electric has been wrestling with weak revenues and heavy losses even as it works to stabilise its business:

• In the quarter ended September 30, 2025, the company’s revenue from operations dropped by about 43% year-on-year to ₹690 crore, while net loss narrowed to ₹418 crore, aided by steep cost cuts.
• Earlier, in Q4 FY25 (March 2025), revenue plunged nearly 60% to around ₹611 crore and net loss widened sharply to ₹870 crore, highlighting deep financial pressure.
• Ola’s full year FY25 revenue was roughly ₹4,600 crore, significantly below earlier growth targets.

Management has signalled that it is reshaping strategy toward profitability over volume growth, trimming fixed costs and leaning into automation across showrooms, service centres and customer-facing operations. Reduced employee expenses have been part of these efforts.
It is also worth noting that this company’s third round of layoffs in a over years’ time. Reportedly, around 500 employees were laid off first in November 2024, then over a thousand employees and contract workers were let go in March 2025 and now this third round that is likely to impact about 175 permanent employees.Founded in 2017 by Bhavish Aggarwal, Ola Electric became one of India’s most capitalised EV startups, backed by major investors including SoftBank, Tiger Global and others. The company raised funds across multiple rounds and, in August 2024, completed a high-profile IPO that raised ₹5,500 crore, valuing the business at several billion dollars.

However, the stock has since slumped from post-IPO highs, with shares trading down sharply amid weak quarterly performance and market pressures. Recent trading sessions have seen declines of up to nearly 40% from recent peaks, wiping out significant market capitalisation.

Ola Electric has faced intensified competition in India’s electric two-wheeler segment from legacy manufacturers and well-established rivals. While the company reclaimed some market share in late 2025, reporting around 9,020 registrations in December with share rising toward about 9–10%, this remains below earlier leadership levels.

Deliveries and revenue have been volatile quarter to quarter, reflecting tepid demand and logistical headwinds.

The company also remains under scrutiny over the suicide of a 38-year-old employee, K Aravind, in September 2025. Police records show he worked as a homologation engineer and left a handwritten note alleging workplace harassment; his brother subsequently filed a complaint that led to an FIR naming Ola CEO Bhavish Aggarwal and a senior executive on charges of abetment to suicide.

Ola Electric has publicly expressed sorrow over the incident and has challenged the FIR in the Karnataka High Court, which has granted protective orders for the executives while the investigation continues. The company denies the harassment allegations.

This latest workforce reduction reflects a cautious, measured approach amid wider operational restructuring. Ola Electric is balancing the imperatives of cutting costs, ramping automation and stabilising sales with reputational and legal challenges. The company’s ability to return to sustainable growth will depend on product momentum, cost discipline and market confidence.