Bhavish Aggarwal-led Ola Electric has initiated a significant restructuring exercise, set to impact over 500 employees across various roles, as part of its efforts to streamline operations and improve profitability, according to MoneyControl.com.
Focus on Profitability
The layoffs are reportedly aimed at enhancing margins as the company strives to achieve profitability. Ola Electric has been restructuring its operations in phases, aligning its workforce with its focus on the electric vehicle (EV) segment.
- Previous Restructuring Efforts:
- In September 2022, the company undertook a similar exercise ahead of its IPO, consolidating operations across verticals.
- In July 2022, Ola Electric laid off approximately 1,000 employees when it shut down its Used Cars, Cloud Kitchen, and Grocery Delivery businesses to focus exclusively on EVs.
Operational Reorganization
This restructuring comes just months after Ola Consumer, a sister concern, announced plans to lay off 10% of its workforce as part of a similar effort. Additionally, Hemant Bakshi, CEO of Ola Cabs, resigned during this period, reflecting broader changes within the parent company, ANI Technologies.
Q2 FY25 Performance
Despite workforce changes, Ola Electric posted strong Q2 FY25 results:
- Revenue: ₹1,240 crore, up 38.5% YoY.
- Deliveries: Increased by 73.6% YoY, with units growing from 56,813 to 98,619.
