Ola Electric Cuts 5% Workforce as EV Sales Remain Weak

Ola Electric has laid off around 5% of its workforce, impacting roughly 620 employees, as part of what it described as a “structural transformation” aimed at improving efficiency through automation. The electric vehicle maker, led by Bhavish Aggarwal, had about 12,396 employees last year. The company said it is focusing on building a leaner organisation while strengthening customer experience and long-term profitability.

The job cuts come amid a sustained slowdown in Ola Electric’s sales performance. For the third consecutive month in January, the company’s retail EV sales remained below the 10,000-unit mark. VAHAN data shows Ola recorded 7,221 registrations by January 31, significantly trailing rivals. Market leader TVS Motor sold over 33,000 electric scooters during the month, while Ather Energy posted nearly three times Ola’s sales at 20,786 units.

Ola’s challenges are compounded by high employee attrition and senior leadership exits. The company reported an attrition rate of 54% in FY25, sharply higher than peers, and has seen its CFO and several top executives resign over the past year. In contrast, rival Ather Energy has maintained lower attrition and steadily gained market share, highlighting diverging strategies in India’s increasingly competitive electric two-wheeler market.

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