Ola Electric Mobility, India’s largest electric two-wheeler manufacturer by sales, is laying off more than 1,000 employees and contract workers as it moves to prioritize profitability, Bloomberg News reported on Monday, citing sources familiar with the matter.
This marks the second round of job cuts at the SoftBank-backed (9434.T) company in five months. Ola Electric previously trimmed about 500 jobs in November, leaving it with 3,824 employees as of December 31—a 1.8% decline from the previous year, according to data from market intelligence firm Tracxn.
See also: Ola Electric Unveils Gen 3 Electric Scooters with Enhanced Technology and Performance
The latest reductions impact multiple departments, including procurement, fulfillment, customer relations, and charging infrastructure, Bloomberg reported. Additionally, the company is laying off front-end sales, service, and warehouse staff as part of an overhaul of its logistics and delivery strategy to cut costs.
Despite leading India’s electric scooter market, Ola Electric has yet to turn a profit due to high operating expenses and deep discounts aimed at attracting customers.
See also: Ola Electric Unveils Two New Scooters with Advanced 4680 Cells
Following the report, Ola Electric’s stock dropped nearly 5% to a session low of 54.05 rupees, extending its decline to 30% since its market debut on August 9.
