Indian electric two-wheeler maker Ola Electric will lay off about 5% of its workforce, affecting roughly 620 employees, as it moves to rein in costs and push towards profitability. The Bengaluru-based company said the cuts form part of a broader restructuring focused on efficiency and automation.
Reuters reported that the latest reduction follows earlier rounds of layoffs in late 2024 and March 2025, underscoring the sustained pressure on the Bhavish Aggarwal-led firm. Ola Electric reported a total headcount of around 12,396 employees as of March 31, 2025, making this its third workforce trim in less than two years.
The move comes against a backdrop of sharply weakening financial performance. In the first quarter of FY26, Ola Electric’s revenue from operations fell nearly 50% year on year to ₹828 crore, compared with ₹1,644 crore a year earlier, while net losses widened 23% to ₹428 crore, the company disclosed in regulatory filings.
Ola Electric said the restructuring is aimed at improving operational discipline, increasing the use of automation across frontline functions and reducing fixed costs. Executives have previously told investors that tighter controls are needed as the company recalibrates its growth ambitions in a more competitive and capital-constrained market.
The pressure is also visible in the company’s market performance. Since its initial public offering in August 2024, Ola Electric’s shares have fallen sharply after an early surge, losing more than half of their peak value, according to Bloomberg data.
Competition has intensified across India’s electric two-wheeler market. Rivals such as Bajaj Auto, TVS Motor and Ather Energy have steadily gained share, while Ola Electric’s own market share has slid from over 35% at its peak to about 15% by 2025, industry data show.
Operational challenges have compounded the strain. Media reports have highlighted service delays, registration issues and customer complaints that weighed on deliveries and dented consumer confidence, even as the company works to expand its service network.
Ola Electric previously cut around 500 jobs in late 2024 and more than 1,000 roles in March 2025, signalling a prolonged reset rather than a one-off correction. Alongside the latest layoffs, the company has also lowered its FY26 revenue guidance to ₹30–₹32 billion, down from an earlier forecast of ₹42–₹47 billion.
The success of Ola Electric’s turnaround will depend on whether cost cuts, automation and operational fixes can stabilise margins in a crowded market. For now, the fresh layoffs underline the challenges facing India’s once high-flying electric scooter maker as it shifts from expansion to survival mode.