Bhavish Aggarwal-led Ola Electric plans restructuring; to impact over 500

The restructuring looks to enhance operational efficiency and improve profit margins as the company works towards achieving profitability

Ola Electric, led by Bhavish Aggarwal, is initiating a fresh restructuring exercise that is expected to impact over 500 employees across multiple roles within the organisation, according to a report by Moneycontrol. While exact details remain undisclosed, the move aims to enhance operational efficiency and improve profit margins as the company strives for profitability.

 

Past restructuring at Ola Electric

This is not the first time Ola Electric has undertaken significant organisational changes. The company has repeatedly restructured its workforce to align with shifting business priorities:

 

1. July 2022:

 

Ola Electric shut down three business verticals—used cars, cloud kitchen, and grocery delivery—as part of a major reorganisation to focus on its core electric vehicle (EV) business. This led to the layoff of around 1,000 employees, even as the company announced plans to hire 800 new staff for its EV segment.

 

 

2. September 2022:

 

Ahead of its planned IPO, Ola Electric conducted two restructuring drives aimed at centralising and streamlining operations while hiring for critical verticals.

 

3. March 2024:

 

Ola Electric’s sister concern, Ola Consumer, announced a restructuring plan that affected at least 10 per cent of its workforce. Around the same time, Hemant Bakshi, CEO of Ola Cabs, stepped down.

 

Post-IPO performance and latest restructuring

Ola Electric Mobility Limited launched its initial public offering (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 EVs, the latest restructuring appears aimed at optimising costs to secure long-term profitability.

 

BIS investigation into Ola Electric

Ola Electric is facing scrutiny from the Bureau of Indian Standards (BIS) following allegations of service deficiencies and product quality concerns. This investigation follows a review by the Central Consumer Protection Authority (CCPA), which received 10,000 complaints against the EV maker.

 

Consumer affairs secretary Nidhi Khare has confirmed that the BIS will conduct a detailed investigation into Ola Electric’s products and services to address these issues.