Due to major losses in the company…
On Friday, 22 November 2024, Officials said, Ola Electric, was to lay off at least 500 employees as part of a restructuring exercise.
Multiple reports indicate that the Bhavish Aggarwal-led electric vehicle company is trying to boost its operational efficiency by reducing redundancies and “driving profitability.” The restructuring exercise will impact employees from several departments.
According to citing sources, “The aim is to cut expenses to drive profitability and improve margins. There's no set period for the completion of the exercise”.
The company reported a 43 percent increase in net loss at Rs. 495 crores in the July-September period, from Rs. 347 crores in the previous quarter.
The electric two-wheeler company also saw its revenue slump 26.1 percent to Rs. 1,214 crores (on-quarter) from Rs. 1,644 crores in the first quarter of this fiscal. The net loss, however, narrowed on a year-on-year basis.
In the post-quarterly earnings, he said the company's operating expenses had decreased and that the company will focus on cost efficiencies.
“As we continue to scale distribution, revenue will keep growing while the operating expenses are still flat or even decline over the next few quarters,” Aggarwal added.
The company also saw its market share plunge to 33 per cent in Q2, down from 49 per cent in the previous quarter.
According to experts, increased competition and service network challenges have impacted Ola Electric's dominance in the market.
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