Ola Electric Mobility, led by Bhavish Aggarwal, supported by SoftBank Group, is expected to fire more than 1,000 employees and contractual workers in order to combat growing losses. The layoffs should run departments such as supply, execution, customer relations and load infrastructure.
This decision marks the second cycle of reducing workforce in less than five months, following the company’s decision to drop 500 employees in November. OLA’s decision comes in the midst of a 50% increase in losses for the December quarter and a meticulous examination of the Indian market regulator and the consumer protection authority.
According to a Bloomberg report, the last wave of layoffs represents more than a quarter of the total OLA labor of around 4,000, which includes contractual workers who are not publicly disclosed. As part of a restructuring effort, Ola PLC of the sections of its customer relations operations.
An OLA official declaration said: “We have restructured and automated our front operations offering improved margins, reduces the cost and improved the customer experience while eliminating redundant roles for better productivity.” This overhaul also had an impact on sales and front service staff in their exhibition halls and service centers, added the report.
Ola Electric’s shares have dropped by more than 60% since its first public call in public in August. In February, Ola sold more than 25,000 units, which was significantly lower than its target of 50,000 units, a reference planned to reach the Ebitda profitability threshold. Adjustments with suppliers have also affected vehicle registrations, as the company seeks to optimize costs and efficiency.
In response to complaints related to the service, Ola Electric has considerably widened its presence by adding 3,200 points of sale in December. This expansion was part of a strategy to combat customer dissatisfaction, which had reached around 80,000 complaints in a month.
