Ola Electric to Let Go of Nearly 500 Employees in Restructuring Exercise

New Delhi: E-commerce giants group Ola Electric is set to lay off nearly 500 employees as part of a major restructuring exercise aimed at improving product margins and boosting profitability prospects, according to sources familiar with the matter.

The move comes months after Ola's sister company Ola Consumer, erstwhile known as Ola Cabs, announced its own restructuring drive in April that would impact around 10% of its staff. The company had also seen a succession shake-up with its CEO Hemant Bakshi stepping down less than a year after joining following the company’s IPO plans.

The decision to cut employees is a signal of Ola Electric's renewed focus on financial discipline, as it seeks to restore its position in the rapidly growing two-wheeler segment. The Bhavish Aggarwal-led firm has been struggling with profitability issues and has seen a rise in customer complaints regarding after-sales service.

Ola Electric recently registered a second-quarter net loss of ₹495 crore, down significantly from ₹524 crore a year earlier. However, this is narrower than the ₹347 crore loss incurred in the April-June quarter.

The company faces criticism over its service infrastructure, with nearly 80,000 customer complaints per month leaving several customers disgruntled. Ola has been under government scrutiny after receiving more than 10,000 customer complaints, though the firm maintains its service issues have largely been resolved.