Electric two-wheeler (E2W) manufacturer Ola Electric has started restructuring the organisation, which is expected to impact approximately 500 employees across various departments and levels, according to reports.
The layoffs are part of the company’s broader efforts to improve its margins and move toward profitability. When contacted by FE, a company spokesperson said they had ‘no comments to offer’ on the reports about the restructuring.
The development comes after the company posted a net loss of ₹495 crore, despite a 39% year-on-year increase in revenue from operations at ₹1,214 crore during the July-September quarter of FY25. While the loss narrowed by 5.5% from Rs 524 crore a year earlier, it showed a sequential rise compared to the ₹347 crore loss reported in the first quarter of FY25.
In the post-earnings call, Bhavish Aggarwal, chairman and managing director of Ola Electric Mobility, noted that the company’s operating expenses had decreased quarter-on-quarter and that the company will focus on cost efficiencies. He also expects operating expenses to remain slightly lower in the upcoming quarters.
Ola Electric’s total expenses decreased by 14% on a quarter-on-quarter basis, amounting to ₹1,593 crore. However, on a year-on-year basis, expenses were up by 22%.
“As we continue to scale distribution, revenue will keep growing while the operating expenses are likely to remain flat or even decline over the next few quarters,” Aggarwal said.
So far, Ola Electric has sold 21,085 units for the month of November, capturing a 25% market share in overall E2W sales. In October, the company had sold 41,742 units, increasing its market share to 30%.
Ola Electric’s shares closed 3% lower at ₹67 on the NSE.
