New Delhi. There is news of restructuring being done by Bhavish Aggarwal owned Ola Electric. Citing sources familiar with the matter, Moneycontrol report said that more than 500 employees of the company may be laid off in this process. This retrenchment is expected to be done in different departments.
The EV company is doing layoffs to improve its margins so that it can become profitable. Earlier, Ola Electric had also conducted layoffs in the month of July 2022. In July 2022, Ola Electric laid off around 1,000 employees by shutting down its three businesses – Used Car, Cloud Kitchen and Grocery Delivery – to focus on the EV business.
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Current status of the company
In the documents the company filed for its IPO in August, it was stated that Ola Electric had 4,011 on-roll employees by March 2024. This SoftBank-backed company has not made profit yet. Experts believe the reason behind this to be high cost and reduction in EV subsidy. However, regarding future plans, Ola has said that it will use in-house batteries for its scooters so that costs can be reduced and profits can be earned more.
declining reputation
After a great start in the stock market in August, Ola Electric is facing problems. If reports are to be believed, its popularity is also decreasing in India’s growing electric two-wheeler market. After complaints from many consumers, Bureau of Indian Standards (BIS) has investigated the services and product quality of the company. Apart from this, Ola’s rivals have also tried to curb the company’s growth by launching scooters priced around it. Let us tell you that on Thursday the company’s shares fell by 3% and closed at its lowest closing price of Rs 67.23.
Tags: business news, Ola Cabs
FIRST PUBLISHED: November 21, 2024, 21:42 IST
