Ola Electric set to lay off 500 employees amid controversies, poor results

Ola Electric, mired successful controversies amid a authorities probe and mounting losses, is acceptable to laic disconnected astatine slightest 500 employees arsenic portion of an restructuring exercise.

The Bhavish Aggarwal-led electrical conveyance (EV) institution is trying to boost its operational ratio by reducing redundancies and “drive profitability”, according to aggregate reports. The restructuring workout volition interaction employees from respective departments, the reports added.

According to an Inc42 report, citing sources, “the purpose is to chopped expenses to thrust profitability and amended margins. There's nary acceptable clip play for the completion of the exercise”.
Ola Electric did not instantly remark connected layoffs.

The institution reported a 43 per cent summation successful nett nonaccomplishment astatine Rs 495 crore successful the July-September play (Q2 FY25), from Rs 347 crore successful the erstwhile 4th (Q1 FY25).

The electrical two-wheeler institution besides saw its gross slump 26.1 per cent to Rs 1,214 crore (on-quarter) from Rs 1,644 crore successful the archetypal 4th of this fiscal. The nett loss, however, narrowed connected a year-on-year basis.

In the post-quarterly net call, Aggarwal said the company's operating expenses had decreased quarter-on-quarter and that the institution volition absorption connected outgo efficiencies.

“As we proceed to standard distribution, gross volition support increasing portion the operating expenses are apt to stay level oregon adjacent diminution implicit the adjacent fewer quarters,” Aggarwal added.

The institution besides saw its marketplace stock plunge to 33 per cent successful Q2, down from 49 per cent successful the erstwhile quarter.

According to experts, accrued contention and work web challenges person impacted Ola Electric's marketplace dominance.

The shares of Ola Electric proceed to slide, much than Rs 38,000 crore worthy of investors' wealth has been eroded successful the company's banal successful conscionable a mates of months.

On Friday, the company's stock was hovering astir Rs 67 apiece, mode beneath its marketplace debut terms of Rs 76 and much than 56 per cent down from its all-time precocious of Rs 157.40.

The marketplace headdress had reached an all-time precocious of astir Rs 69,000 crore, which has travel down to astir Rs 31,000 crore.

Several Ola Electric customers person reported problems with software, artillery and jammed tyres. The Central Consumer Protection Authority (CCPA) has besides ordered a broad probe into the EV institution implicit its user ailment redressal practices.