New Delhi, March 3 (SocialNews.XYZ) Ola Electric Mobility is reportedly laying off more than 1,000 employees and contract workers in its second round of job cuts within months.
The decision came as the company, backed by SoftBank Group Corporation, is working to reduce its growing losses.
The latest layoffs are happening across various departments, including procurement, fulfillment, customer relations and charging infrastructure, according to reports on Monday.
This is the second round of layoffs in less than five months. In November, the company had laid off around 500 employees.
The current layoffs account for more than a quarter of Ola's total workforce, which stood at 4,000 at the end of March 2024. The layoffs also include contract workers, who are not counted in the company’s public employee disclosures.
The report also revealed that as part of a restructuring effort, Ola Electric is automating parts of its customer relations operations.
The company is also letting go of front-end sales, service, and warehouse staff at its showrooms and service centres as it revises its logistics and delivery strategy to cut costs.
The plans for layoffs may evolve depending on business requirements, the reports mentioned.
The EV company was yet to issue a statement on latest round of layoffs.
Ola Electric, which went public last August, has faced several challenges. The company reported a 50 per cent increase in losses for the December quarter (Q3) and has faced scrutiny from India’s market regulator and consumer protection authorities in recent months.
Additionally, shares of Ola Electric have dropped over 60 per cent from their peak following the company’s IPO debut.
In a recent update, Ola Electric reported selling over 25,000 units of its electric scooters in February, capturing a 28 per cent market share.
However, according to the data from the government's VAHAN portal, only one out of three Ola Electric scooters sold last month was officially registered.
The company had informed investors that its vehicle registrations in February would be impacted as it renegotiates terms with two of its vendors to reduce costs and improve operational efficiencies.
Source: IANS
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