Ola electric restructuring to impact over 500 employees

Ola Electric is reportedly undergoing a significant restructuring initiative expected to impact more than 500 employees, over 12% of its 4,000-strong workforce. The move aims to streamline operations, eliminate redundancies, and bolster profitability, with the process slated for completion by December 2024.

Also Read: Uber eyes Bengaluru for shuttle service expansion

Reports described the effort as focused on “cost optimisation and aligning the company’s operations with its profitability goals.” A similar restructuring was carried out in 2022 ahead of Ola Electric’s much-anticipated IPO.

The company launched its IPO on August 2, 2024, with shares debuting on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on August 9. Ola Electric’s strong financial performance post-IPO underscores its growing presence in the electric vehicle (EV) market.

In Q2 FY25, the EV giant reported a 38.5% year-on-year revenue growth, reaching ₹1,240 crore. This was driven by a 73.6% increase in deliveries, with 98,619 units sold compared to 56,813 in the same quarter of the previous year.

Despite these successes, the restructuring highlights Ola Electric’s focus on long-term sustainability. The company operates 782 company-owned stores, averaging 130 sales per store each quarter—2-3 times the industry norm—and plans to expand to 2,000 outlets by March 2025.

The restructuring reflects Ola Electric’s intent to balance growth with operational efficiency.