Ola Slashes 500 Jobs to Streamline Operations Post-IPO

Ola Electric, India’s leading electric two-wheeler manufacturer, has initiated a restructuring exercise that will see the company trim its workforce by approximately 5%.

This move, affecting roughly 500 to 600 employees, comes as the Bhavish Aggarwal-led firm intensifies its focus on achieving operational profitability and streamlining internal efficiencies following its recent public listing.

Ola Electric Restructuring for Profitability

The layoffs are primarily concentrated across departments where roles have become redundant due to increased automation and the integration of AI-driven processes in service and manufacturing.

This “right-sizing” exercise is part of a broader strategy to improve the company’s bottom line.

Despite being a dominant player with a market share of over 30% in the e-scooter segment, Ola Electric has faced consistent pressure to narrow its losses, which stood at ₹495 crore in the latest quarter.

The Shift Toward In-House Technology

A significant driver of this workforce reduction is the company’s pivot toward vertical integration.

Ola is increasingly moving away from third-party vendors, opting to develop its core technology—including battery cells and software—in-house at its “Gigafactory” and Futurefactory in Tamil Nadu.

While this transition requires high-end engineering talent, it has led to the phasing out of several mid-level administrative and support roles that no longer align with the company’s lean manufacturing goals.

Market Pressures and Service Challenges

The layoffs arrive at a delicate time.

While sales remain strong, Ola Electric has dealt with a surge in consumer complaints regarding after-sales service and hardware glitches.

The company recently received a show-cause notice from the Central Consumer Protection Authority (CCPA) over thousands of unresolved service tickets.

By restructuring the workforce, Ola aims to redirect resources toward its “HyperService” campaign, which promises faster repairs and improved customer support to maintain its market lead against rivals like TVS and Ather Energy.

Despite the job cuts, the company remains in a hiring phase for specialized roles in cell chemistry and AI, signaling a shift in its talent requirements rather than an across-the-board freeze.

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