Ola Electric has announced that it will lay off around 5% of its workforce as part of a broader restructuring exercise aimed at improving efficiency, automating operations and accelerating its turnaround, even as the company grapples with weakening e-scooter sales and mounting competitive pressure in India’s electric two-wheeler market.
The SoftBank-backed electric vehicle maker said the workforce reduction is linked to increased automation across its front-end operations and is part of a larger structural reset focused on speed, cost discipline and long-term profitability.
The layoffs come at a critical juncture for Ola Electric, which has been facing sluggish demand for its electric scooters, heightened scrutiny over service quality, and intensifying competition from rivals such as TVS Motor, Bajaj Auto and Ather Energy.
Turnaround Efforts and Service Reset
Ola Electric said it continues to focus on stabilising its business by building on early gains from its Hyperservice initiative, a service-led execution reset introduced to address customer complaints and after-sales challenges. According to the company, over 80% of service requests are now being resolved on the same day nationwide, marking a significant improvement in turnaround times. The company is also doubling down on automation and process optimisation, particularly across customer-facing operations, in an effort to reduce costs and improve operational efficiency.
Sales Pressure and Competitive Landscape
Ola Electric’s restructuring move comes against the backdrop of unfavourable sales trends in its core e-scooter business, as the overall electric two-wheeler market shows signs of moderation after a rapid growth phase. The company has also faced reputational challenges linked to customer experience and service delays, which have weighed on demand in recent months.
Meanwhile, traditional two-wheeler manufacturers with strong dealer networks have been steadily gaining market share in the EV segment, intensifying pressure on Ola Electric’s direct-to-consumer model.
Focus on Leaner, Profitable Growth
Despite near-term challenges, Ola Electric said it remains focused on strengthening customer experience and building a leaner organisation positioned for sustainable and profitable growth. The company has been working to balance scale with execution discipline as it navigates a more competitive and margin-conscious phase of the EV industry. The latest restructuring underscores Ola Electric’s attempt to recalibrate its operations amid a tougher market environment, shifting investor expectations and the need to restore confidence in its core electric scooter business.