Ola Electric Mobility's Strategic Restructuring Amidst Financial Challenges

Ola Electric Mobility is undergoing a restructuring effort, resulting in around 1,000 job cuts to improve financial performance and customer experience. The company is enhancing its EBITDA margins, inventory management, and streamlining operations. The restructuring follows wider market challenges, including increased competition and regulatory scrutiny.

Ola Electric Mobility is set to lay off approximately 1,000 employees across various functions in a bid to restructure and stem financial losses, insiders have disclosed. The move is aimed at enhancing productivity and automating operations, according to company representatives.

Recently, the company has focused on improving EBITDA margins and inventory management. It is leveraging its extensive network of 4,000 retail stores nationwide instead of maintaining regional warehouses, thereby optimizing costs and speeding up customer deliveries. Additionally, Ola Electric is renegotiating contracts with vehicle registration partners to streamline processes and cut expenses.

The downsizing marks the second round of job cuts within five months. Ola Electric reported a net loss of Rs 564 crore in the quarter ending December 31, 2024, faced with a competitive market and rising operational costs. Around 10,644 complaints from the Central Consumer Protection Authority have been resolved, yet scrutiny continues as the authority seeks further documentation.

(With inputs from agencies.)