According to the report, Ola Electric Mobility Limited is planning to lay off more than 1,000 employees and contract workers. The company wants to reduce its growing losses through this. This job cut will affect several departments including procurement, fulfillment, customer relations and charging infrastructure. People familiar with the matter said that this layoff is part of Ola Electric’s efforts to control costs.
Ola Electric’s Layoff Plans: Restructuring for Cost Control
This huge pruning follows the previous round of job cuts in November 2023, when Ola Electric allowed around 500 employees to go as part of the reorganization of a company. The primary target was to increase the profit margin and improve the company’s long -term financial stability. Ola Electric is facing increasing pressure to maintain profitability in a highly competitive electric vehicle (EV) market.
Ola Shares Fell 3.40%
After the news of layoffs, Ola’s stock fell by 3.40% today. It closed at Rs 54.90 on the National Stock Exchange. The stock has fallen by about 52% in the last 6 months. Whereas this year the stock has fallen by about 37%.
Ola Electric Mobility suffered a net loss (consolidated net loss) of Rs 564 crore in the third quarter of FY 2024-25. The company had suffered a loss of Rs 376 crore in the same quarter a year ago. The company’s loss has increased by 50% on an annual basis. The company released its third quarter results on 7 February
Talking about the company’s consolidated revenue from operations, it was Rs 1,045 crore in the October-December quarter. It has decreased by 19% on an annual basis. In the same quarter a year ago, the company had generated a revenue of Rs 1,296 crore. The amount received from selling goods and services is called revenue.
The Future of Ola Electric
Sorting and financial conflict indicate a significant twist point for Ola Electric. As the company works to optimize costs and restructuring its operations, it will be necessary to monitor your progress in reversing the trends downwards in both its financial and stock performance. Ola electric capacity to navigate these challenges will be important for its future in the competitive EV industry.
