According to reports, Ola Electric, a producer of electric scooters, is laying off more than a thousand staff and contract workers in an effort to reduce its growing losses.

This action is a component of a broader reorganization initiative aimed at streamlining processes and guiding the business toward profitability, as Bloomberg initially reported.

As part of a restructuring drive to increase margins and improve profitability prospects, the Bengaluru-based company lay off about 500 people across multiple departments in November, according to media sources.

In addition to layoffs, the company has recently lost high-level personnel, such as Chief Technology and Product Officer Suvonil Chatterjee and Chief Marketing Officer Anshul Khandelwal.

Even though Ola Electric has reclaimed its market share in the two-wheeler electric vehicle market, the Central Consumer Protection Authority (CCPA) issued a show-cause notice to the company in October of last year because of an increase in customer complaints alleging unfair business practices, deceptive advertising, and violations of consumer rights.

Revenue for the Bhavish Aggarwal-led company fell 19.4% year over year to 1,045 crore during the quarter that ended in December 2024 (Q3 FY25). During that time, the company's losses also increased by 50% to 564.

The shares of two-wheeler electric vehicle (EV) producer Ola Electric plummeted 5% to a new 52-week low.

Ola Electric, which reportedly let go of some 500 workers in November of last year, would be making its second wave of layoffs in less than five months.

According to the study, Ola's most recent round of layoffs impacts about 25% of its 4,000 employees as of March 2024, including contract workers who are not counted within the company's official workforce.

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