Ola Electric's 2nd Layoff Round? Over 1,000 Jobs at Risk Amid Rising Losses

Bhavish Aggarwal-led Ola Electric is likely to lay off over a thousand employees, including contract workers amid ballooning losses and intense competition in the EV (electric vehicles) sector, according to a report published by Bloomberg. These layoffs will occur across multiple departments such as fulfillment, procurement, charging infrastructure, customer relations, etc.

Notably, this is the second round of layoffs at the SoftBank-backed new-age company in the past five months. Previously, Ola Electric had laid off around 500 employees. The cost-cutting process started taking place a few months after the EV giant launched its IPO on the bourses last August.

“We have restructured and automated our front-end operations delivering improved margins, reduced cost, and enhanced customer experience while eliminating redundant role for better productivity,” an Ola spokesperson told Bloomberg in an email. However, they have not disclosed the exact number of layoffs in the second round.

Read More | Bhavish Aggarwal's Breakeven Target: Will Ola Electric Face A Bumpy Ride Ahead?

Ola’s Rising Losses

Ola Electric reported a significant increase in its losses i.e., the EV company posted a net loss of Rs 564 crore for the third quarter of fiscal year 2025 as compared to Rs 376 crore in the year-ago period. And the company’s revenue from operations also witnessed a noticeable fall of 19% year-on-year to Rs 1,045 crore. In Q3FY24, Ola’s revenue stood at Rs 1,296 crore.

On a sequential basis, the company’s net loss widened from Rs 495 crore in Q2FY25, while revenue dropped from Rs 1,214 in the previous quarter. It also took some cost-cutting measures like huge discounts on scooters to reduce expenses. Despite this, Ola’s expenses reduced to Rs 1,505 crore from Rs 1,593 crore in Q2 but the company’s financial strain persisted, with losses mounted further in third quarter.

Read More | Ola Electric Renegotiates Registration Agency Contracts; No Impact on Sales Seen

Ola’s Breakeven Target

The company’s management expects that its auto segment will breakeven at 50,000 units per month of sales --- double the number of units (25,000) they sold in January 2025. Its Gen 3 scooters, along with new product addition like electric bike and electric-three wheeler, will also be included in this target.

In February, the company has sold 25,000 units, a decline of around 26% in its sales year-on-year basis as compared to 33,722 units sold in February 2024. Despite being low on sales volumes, the company managed to maintain the leadership with a 28% market share in the two-wheeler EV segment.

And not to forget about the company’s store expansion plans; Ola has increased its network to 4,000 stores in December 2024 across the country.