Ola Electric Faces Layoffs Amid Stock Decline

Ola Electric Mobility's shares dropped over 5% amid news of over a thousand layoffs. Having fallen 66% since debuting last year, the company faces restructuring challenges. Reports attribute layoffs to automation advances. Despite challenges, Ola maintains a dominant market share in electric two-wheelers.

On Monday, shares of Ola Electric Mobility saw a decline exceeding 5% in midday trading, following reports of the company laying off over a thousand employees. This move comes as the company aims to curb its rising losses.

Both BSE and NSE recorded the stock's fall to a 52-week low of Rs 53.71 per share. Since its impressive stock market debut in August last year, Ola Electric's shares have decreased by 66% from their peak values.

Notably, the layoffs span divisions such as customer relations and procurement, attributed to the automation of certain operations. Despite these challenges, Ola Electric reported selling 25,000 units in February, securing a 28% market share in electric two-wheelers.

(With inputs from agencies.)