What's Happening?
Ola Electric, an electric vehicle manufacturer, is set to reduce its workforce by 5% as part of a business restructuring effort. This move follows a similar restructuring in March 2025, where over 1,000
jobs were cut to address financial losses. The company aims to enhance operational efficiency by increasing automation in its front-end operations. Ola Electric's recent focus has been on its delivery service, Hyperservice, which promises a 'one-day resolution' for service-related issues and has expanded to cover over 80% of service requests nationwide. Despite narrowing its net loss by 15% year-over-year to INR 418 crore in Q2, the company's operating revenue declined by 43% year-over-year to INR 690 crore. The restructuring comes shortly after the resignation of CFO Harish Abichandani, with Deepak Rastogi appointed as the new CFO.
Why It's Important?
The workforce reduction at Ola Electric highlights the challenges faced by companies in the electric vehicle sector, particularly in managing financial sustainability and operational efficiency. The restructuring is part of Ola Electric's strategy to achieve long-term profitable growth by streamlining operations and focusing on customer service improvements. This move could impact the company's market position and its ability to compete in the rapidly evolving EV market. The changes in leadership and strategic focus may also influence investor confidence and the company's future financial performance.
What's Next?
Ola Electric's next steps will likely involve further integration of automation technologies to enhance operational efficiency and customer service. The company may also focus on expanding its Hyperservice delivery model to capture a larger market share. Monitoring the impact of these changes on the company's financial performance and market position will be crucial. Additionally, the new CFO, Deepak Rastogi, will play a key role in steering the company's financial strategy and addressing any challenges that arise from the restructuring.
