Ola Electric on Friday announced that it will lay off 5% of its workforce as part of a restructuring exercise, less than a year after it let go of over 1,000 employees and contract workers in a similar drive aimed at improving profitability.
The latest round of restructuring is estimated to impact more than 500 employees and workers, although the company has not specified the number affected. In a statement, Ola Electric said it is doubling down on speed and discipline through increased automation across its front-end operations.
“As part of this ongoing structural transformation, approximately 5% of the workforce will be impacted,” the company said.
Employment Data Overview
Ola Electric had 11,328 permanent and non-permanent employees at the end of FY25 as per the company’s annual report. It also employed 2,399 permanent and non-permanent “workers” at its manufacturing facility in Hosur, Tamil Nadu.
Based on these numbers, the 5% workforce reduction could impact over 600 people, though the company did not specify whether the cuts would be from its employee base or plant workforce and the extent of impact between permanent and non-permanent workforce.
The restructuring comes at a time when Ola Electric is struggling to sustain its sales and market position in the electric two-wheeler segment. Once a market leader with a 40% share of electric scooter sales, the company has seen its share erode steadily amid issues related to product quality, after-sales service, and rising consumer complaints.
Ola Electric sold 6,747 units in January, capturing a 6% market share, while rivals TVS Motor, Bajaj Auto and Ather Energy together occupied the top three positions with a combined 67% market share.
Previous Layoff Rounds
In March 2025, Ola Electric laid off over 1,000 employees and contract workers across procurement, fulfilment, customer relations and charging infrastructure to cut costs and move towards profitability, Bloomberg had reported, though the company did not confirm the exact number impacted.
That round of layoffs came less than five months after the Bengaluru-based company let go of around 500 employees in November 2023.
Earlier this month, Ola Electric announced the resignation of its chief financial officer, Harish Abichandani, who had been in the role since December 2023 and was among the key managerial personnel during the company’s IPOIPO in August 2024. He has been replaced by Deepak Rastogi, former group CFO of Puravankara.
Shares of Ola Electric closed 2% higher at ₹32.51 on NSE.