Ola Electric Lays Off 1,000+ Employees Amid Heavy Losses – Can It Survive The EV Race?

Ola Electric, India’s leading EV manufacturer, is poised to lay off more than 1,000 employees as it tries to curtail losses. The latest action is another instalment of layoffs after the company trimmed its staff by about 500 in November 2024. The fresh wave of layoffs will see many departments lose their jobs, including procurement, fulfilment, customer service, and charging infrastructure. The attempt at restructuring is when Ola Electric discovers it challenging to simplify its business and merge in the very competitive EV space.

A Struggling Company

The layoff decision is one of Ola Electric’s dilemmas. The SoftBank-backed firm posted an unprecedented hike in losses for the quarter ending December 2024, ringing alarm bells about its well-being. Also, its shares have tumbled more than 60% since its first public offering (IPO) in August 2024. Several reasons have been behind this decline, including electric scooter fires, issues of quality, and consumer wrath over post-purchase services.

Despite such obstacles, Ola Electric remains committed to its expansion plans. In February 2025, the company introduced its first electric motorcycle, Roadster X, at a starting price of Rs 74,999 (ex-showroom). However, these product introductions have not been sufficient to mitigate its increasing financial troubles.

Layoffs and Restructuring: An Imperative Step?

Ola Electric’s recent round of job cuts will likely affect over a quarter of its workforce, approximately 4,000 employees as of March 2024. Sources suggest that front-end sales, service, and warehouse personnel at Ola’s showrooms and service centres will also be impacted as the company overhauls its logistics and delivery models.

As part of its cost-reduction efforts, Ola Electric is automating various parts of its customer relations functions, which could result in less human resource demand. The company also optimizes charging infrastructure and fulfilment processes to enhance efficiency.

Slumping Market Share and Challenges in EV Sales

Ola Electric downsizes when it finds it difficult to hold onto its market share in the EV industry. In February 2025, the company recorded a sales unit of more than 25,000, taking a market share of 28%. Though this figure looks high, it is a far cry from CEO Bhavish Aggarwal’s goal of 50,000 units a month, which was stated early this year. The slowing sales reflect Ola Electric’s inability to compete with competitors such as Ather Energy, TVS, and Bajaj, who have aggressively made inroads in EV offerings.

Even though Ola Electric is a leader in India’s EV two-wheeler market, it has been marred by several setbacks, including poor consumer sentiment because of quality control issues and delayed deliveries. Most customers have flooded social media with complaints about battery performance, after-sales service, and vehicle durability. These issues have adversely affected the brand image of Ola Electric and could have contributed to its poor stock performance.

The Roadster X: A Glimmer of Hope?

Ola Electric recently unveiled the Roadster X, its first electric motorbike, to win back customer confidence and market dominance. Ola Electric has positioned the Roadster X as a cost-effective, high-performance electric bike offered in three versions:

• Roadster X – Rs 74,999
• Roadster X+ (4.5 kWh battery) – Rs 1,04,999
• Roadster X+ (9.1 kWh battery) – Rs 1,54,999

Deliveries of the Roadster X series are slated to start in March 2025. While the launch of the Roadster X is a big success for Ola Electric, it is uncertain whether this new line of products will help change the company’s fortunes.

Investor and Market Reactions

The falling share price of Ola Electric and mounting financial losses have chilled investors to the bone. All experts feel that the company’s aggressive growth strategy has turned sour, resulting in mounting losses and inefficiencies in operations. The company’s unprofitability and stiffening competition in the EV market have landed Ola Electric in a weak position.

In addition, the Indian government’s support for EVs has also raised competition within the sector, with new entrants emerging. Hero Electric, Revolt Motors, and Ather Energy are some of the companies that have expanded their market share aggressively using competitive prices and better technology.

What’s Next for Ola Electric?

With over 1,000 job cuts, higher automation, and an operational revamp, Ola Electric is attempting to manage its losses and keep the business afloat. However, how much these will help revitalize investor sentiments and drive sales is questionable. To consolidate its market position, the company has to resolve quality issues, enhance customer delight, and boost its service infrastructure.

Ola Electric founder and CEO Bhavish Aggarwal has also emphasized the need for EV penetration in India in the past. He dreams of the day that Indian roads will be filled with electric cars, reducing dependence on fossil fuels and emissions. Before any of that happens, though, Ola Electric must iron out its in-house problems, regain the faith of its patrons, and project itself as a safe and cutting-edge EV leader.

Here We Conclude

Ola Electric’s recent job cuts are a watershed moment for the company. Cost cutting and restructuring could offer some short-term relief, but the acid test will deal with customer problems, enhance product quality, and increase sales volumes. The launch of the Roadster X provides some reason for hope, but whether that will be enough to offset the company’s chronic ailments remains to be seen.

As Ola Electric rides out this stormy weather, the coming months will be pivotal in establishing its long-term viability and market standing in India’s EV sector.