EV major Ola Electric, is undergoing a restructuring exercise across multiple levels and roles, according to sources. The process is expected to impact around 500 employees as part of efforts to reduce redundancy, improve margins and drive long-term profitability.
While the restructuring will affect employees across various departments, the exact timeline has not yet been confirmed.
Similar exercises
Previously, the EV player had conducted similar restructuring exercises in July 2022 and later in September 2022. In July, the company laid off approximately 1,000 employees and shut down three business verticals — used cars, cloud kitchens and grocery delivery. The organisation attributed the restructuring to its commitment to focus on the EV segment. In September 2022, the company conducted a second round of layoffs.
The listed company reduced its losses by 5 percent year-on-year (y-o-y) in Q2FY25, reporting a loss of ₹495 crore compared to ₹524 crore in the same period last year. The revenue for the quarter under review stood at ₹1,240 crore, up by 38.5 percent y-o-y, as against ₹896 crore in the same quarter last year.
During a post-earnings call, Bhavish Aggarwal, Chairman, and MD of Ola Electric, discussed the company’s focus on cost efficiencies and said, “Our operating expenses are flat or slightly 1 percent lower quarter-on-quarter (q-o-q), and we are concentrating on improving cost efficiencies. We expect operating expenses to remain steady or potentially decrease over the next couple of quarters as we scale distribution, expand our product portfolio, and continue to grow revenue.”
The shares of Ola Electric closed at ₹67.24 on Thursday, down by 2.93 percent on the BSE.