Ola Electric Restructures: 500 Employees Set to Exit Amid Challenges

Electric two-wheeler manufacturer Ola Electric is reportedly laying off nearly 500 employees across multiple teams as part of a restructuring initiative aimed at improving margins and profitability. This decision comes amidst growing competition and operational hurdles in the rapidly expanding electric vehicle (EV) market.

Restructuring Across the Ola Group

Ola Consumer (previously Ola Cabs), a sister company of Ola Electric, undertook a similar reorganisation effort in April 2024. The resignation of CFO Karthik Gupta and CEO Hemant Bakshi were among the major leadership changes that resulted from that move, which impacted around 10% of its staff. Ola shifted its attention to growing its electric fleet in India at the same time it stopped operating ride-hailing services in Australia, New Zealand, and the United Kingdom.

Ola Electric’s restructuring is part of its broader strategy to stabilize operations amid financial challenges. As per reports, the company’s net loss for Q2 FY24 stood at ₹495 crore, marginally lower than the ₹524 crore loss in the same period last year but higher than the ₹347 crore loss reported in Q1 FY24.

Struggles with Customer Service

Despite its ambitious growth plans, customer satisfaction remains a pain point for Ola Electric. Reports indicate the company receives 6,000–7,000 complaints daily, overwhelming service centers and causing significant delays. These complaints, totaling around 80,000 per month, have led to frustration among customers and service staff alike.

In response, Ola Electric has committed to expanding its service infrastructure. By March 2025, the company aims to increase its service and co-located sales outlets from 782 locations to 2,000 stores. The company also claims to have addressed its backlog of complaints.

Adding to its challenges, Ola Electric faces scrutiny from the Central Consumer Protection Authority (CCPA) over alleged deficiencies in its scooters and services. This follows over 10,000 customer complaints lodged against the company. The CCPA has ordered a detailed investigation into these grievances, even as Ola asserts its commitment to resolving customer issues and enhancing its product offerings.

Industry Competition Intensifies

Ola Electric's market dominance is under pressure as rivals like Bajaj push aggressively into the EV space. With its market share reportedly dipping below 30%, Ola must navigate fierce competition while addressing operational inefficiencies.

As Ola Electric reshapes its workforce and operational model, its ability to deliver on customer expectations and achieve profitability will be critical to maintaining its position in India's fast-evolving EV market.

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