Ola Electric restructuring: 620 jobs to be axed

• Ola Electric lays off 5% staff for profitability.
• Ola stock down 57% after IPO; sales drop 51%.
• Ola bets on in-house battery cells for profit.

Ola Electric Layoffs: Ola Electric is tightening its operations as the electric two-wheeler maker pivots from rapid expansion to financial stability. The

Bengaluru-based company has decided to reduce around 5 per cent of its staff as part of a restructuring exercise designed to push the business closer to profitability. Instead of chasing volumes alone, Ola says it is reworking its front-end systems with heavier use of automation and stricter execution. The idea, according to the company, is to create a sharper, leaner organisation that can grow without burning cash.

Expected to impact nearly 260 roles

With a workforce of a little over 12000 employees as of March 2025, the move is expected to impact nearly 260 roles. This is not Ola’s first round of belt-tightening. Last year, the SoftBank-backed firm cut more than 1000 jobs, arguing that automation was already helping improve margins in customer-facing operations.

Once the undisputed leader of India’s e-scooter space, Ola has seen its dominance weaken. Traditional manufacturers such as Bajaj Auto and TVS Motor have expanded aggressively with wider dealer networks and new models, while Ather Energy has also gained traction. As competition intensified, Ola’s early advantage began to fade.

Ola’s stock falls

The company’s troubles became more visible after its high-profile stock market listing in August 2024. Although the shares surged initially, operational hiccups followed. Service backlogs, registration delays and customer complaints hurt brand confidence and slowed demand. Since its post-listing peak, Ola’s stock has fallen over 57 per cent.

Ola’s volumes dropped 51 per cent in 2025

Sales pressure added to the strain. Government data shows Ola’s volumes dropped 51 per cent in 2025, partly due to registration challenges at the start of the year. In its latest earnings update, the company also revised its revenue expectations downward as it chose profitability over aggressive expansion.

Ola now expects fiscal 2026 revenue

Ola now expects fiscal 2026 revenue in the range of Rs 30 billion to Rs 32 billion, sharply lower than its earlier forecast. For comparison, the firm reported about Rs 46.65 billion in revenue in fiscal 2025.

In-house battery cell manufacturing

Looking ahead, Ola is placing a major bet on in-house battery cell manufacturing. Beyond using the cells for its own vehicles, the company plans to sell them to startups and enterprises, hoping this vertical will become a meaningful profit driver as it rebuilds its business model around efficiency rather than scale.