Daijiworld Media Network - Bengaluru

Bengaluru, Jan 30: Ola Electric has announced a 5% reduction in its workforce as part of its ongoing structural transformation, aimed at improving efficiency and curbing losses. The move comes amid a series of developments, including the resignation of CFO Harish Abichandani and founder Bhavish Aggarwal selling a portion of his stake, alongside intense competition in the electric two-wheeler market.

This is not the company’s first round of layoffs. In March 2025, Ola Electric cut 1,000 employees and contract workers across sales, service, and infrastructure departments, following an earlier round of 500 job cuts in November 2024.

While the restructuring has helped narrow losses, the company has experienced a sharp decline in revenue, sales, and market share over the past year. For the quarter ended September (Q2FY26), Ola Electric reported a net loss of ?418 crore, down from ?495 crore a year ago, while operating revenue fell to ?690 crore from Rs 1,213 crore.

Ola Electric stated it is focusing on business turnaround, leveraging early gains from its Hyperservice initiative and service-led execution reset, which now resolves over 80% of service requests on the same day nationwide. “The company is doubling down on speed and discipline through increased automation across frontend operations. As part of this ongoing structural transformation, approximately 5% of the workforce will be impacted. Ola Electric remains focused on delivering a stronger customer experience and building a leaner organisation positioned for long-term, profitable growth,” the statement added.

The Bhavish Aggarwal-led company, which led the e-2W market in 2024 with a 35.5% share, saw its market share drop to just over 15% in 2025, and more recently to single-digit figures. Over the past year, the company’s share price has fallen more than 51%, reflecting the challenges in India’s competitive EV market.