500 Employees Expected to Be Terminated from Ola Electric
500 Employees Expected to Be Terminated from Ola Electric
Ola Electric is set to reduce its workforce by 500 employees, following its recent listing on the stock exchanges less than four months ago, as reported by sources to TOI. India’s leading product certification agency is investigating Ola due to multiple consumer complaints regarding service standards and product-related concerns.
India’s leading electric scooter manufacturer, Ola Electric, is reportedly planning to reduce its workforce by approximately 500 positions in an effort to focus on profitability.
As of March 2024, Ola Electric employed 4,011 individuals, as detailed in its most recent IPO document from August. The company has chosen not to provide any comments regarding these reports.
This decision will affect staff across various departments and is part of a larger strategy aimed at cost management and achieving profitability for the company.
Ola Electric posted losses of Rs 495 crore in the Sept quarter on a consolidated basis. Losses, though, narrowed marginally on a year-on-year basis, increased sequentially.
Earlier this year, Ola Consumer, previously known as Ola Cabs, undertook a restructuring initiative that resulted in the reduction of approximately 200 employees, which accounts for around 10% of its workforce.
Bhavish Aggarwal’s Ola Electric has recently attracted the attention of the Central Consumer Protection Authority (CCPA), which has initiated an investigation into allegations regarding shortcomings in the company’s services and products.
Although Ola Electric asserts that it has successfully addressed 99% of customer grievances, the CCPA has identified that a significant number of consumer complaints continue to be unresolved.
The company supported by SoftBank has not yet achieved profitability, primarily due to elevated expenses and a decrease in electric vehicle subsidies. Ola has indicated that utilizing its own batteries for scooters will be crucial in reducing costs and attaining profitability.
Ola Electric is currently facing regulatory challenges after its impressive stock market launch in August, and it is experiencing a decline in its leading position within India’s expanding electric two-wheeler sector.
