Ola Electric to Cut 5% Workforce Amid Cost-Cutting and Profitability Drive
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CNBC TV18•30-01-2026, 20:57
Ola Electric to Cut 5% Workforce Amid Cost-Cutting and Profitability Drive
- •Ola Electric announced a 5% reduction in its permanent workforce, affecting 150-175 employees, as part of a structural reset focusing on automation and operational efficiency.
- •The layoffs aim to improve service speed and sharpen profitability after the company faced weak revenues and heavy losses, including a 43% year-on-year revenue drop in Q3 FY25.
- •This marks the third round of layoffs for Ola Electric in over a year, following previous reductions of 500 employees in November 2024 and over a thousand in March 2025.
- •Despite a high-profile IPO in August 2024, the company's stock has slumped due to weak quarterly performance and intensified competition in the electric two-wheeler market.
- •Ola Electric is also grappling with a legal challenge following an FIR against CEO Bhavish Aggarwal and a senior executive for alleged abetment to suicide of an employee, K Aravind, which the company denies.
Why It Matters: Ola Electric is trimming its workforce and costs to achieve profitability amidst financial struggles and legal challenges.
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