 "Ola Electric may lay off 500 employees as part of restructuring exercise")
Ola Electric is conducting a restructuring exercise that is expected to affect over 500 employees across various roles within the organisation, according to sources. This would account for over 12 per cent of the firm’s workforce, which stands at about 4,000 people.
“This is a restructuring exercise ongoing for the last few months and is expected to conclude by next month,” said a person familiar with the development. “The aim is to remove redundant roles, improve efficiency, increase margin, and attain profitability.”
The firm undertook similar restructuring exercises in 2022 ahead of its initial public offering (IPO).
Ola Electric Mobility Limited launched its IPO on August 2, 2024, concluding subscriptions on August 6, 2024. Shares were listed on the BSE and NSE on August 9, 2024.
The company released its first financial results post-IPO on August 14, 2024, for the quarter ending June 30, 2024 (Q2 FY25). It reported a 38.5 per cent year-on-year increase in revenue to Rs 1,240 crore, driven by a 73.6 per cent rise in deliveries (98,619 units delivered compared to 56,813 units in Q2 FY24).
Despite robust financial growth highlighting the demand for its electric vehicles (EVs), the latest restructuring appears aimed at optimising costs to secure long-term profitability.
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Ola Electric had 782 company-owned stores as of September 2024, with each store delivering 130 sales on average per quarter, roughly 2-3 times the industry average. Ola Electric plans to expand its company-owned store (and co-located service infrastructure) network to 2,000 by March 2025.
Ola Electric recently stated it has the broadest portfolio in EV scooters, with six models across a price range of Rs 75,000 to Rs 150,000. The company is now focusing on entering other two-wheeler (2W) and three-wheeler (3W) categories. Over the next two years, it plans to launch 20 products, with at least one new product every quarter.
Ola Electric further reiterated that cell manufacturing has been an integral part of its vertical integration strategy. The company said it is on track to commence the use of these cells in its electric two-wheeler (E2W) portfolio by Q1 FY26. All production systems at the Ola Gigafactory are fully operational, and trial production reached a new milestone in Q2 FY25 with over 20,000 cells manufactured.