Key Points
- Ola Electric is restructuring about 500 jobs to reduce unnecessary roles and boost profitability.
- Restructuring efforts also took place in July and September 2022, affecting about 1,000 employees.
- The company reported a smaller loss of ₹495 crore in Q2FY25, down from ₹524 crore last year.
- Revenue for Q2FY25 grew by 38.5%, reaching ₹1,240 crore.
- Ola Electric is focusing on keeping operating costs steady or lower in the future.
- Ola Electric’s shares dropped by 2.93% on the Bombay Stock Exchange (BSE).
Looma News
Ola Electric is restructuring its operations, which will affect around 500 employees. The company aims to cut unnecessary roles, improve profit margins, and focus on long-term growth. While the exact timing of the changes is unclear, this move is part of a wider effort to strengthen its electric vehicle business and streamline its operations.
This restructuring follows similar efforts in 2022. In July, Ola Electric let go of about 1,000 employees and closed three business areas: used cars, cloud kitchens, and grocery delivery. These steps were taken to refocus the company on electric vehicles. Another round of layoffs happened in September 2022 as the company continued to simplify its structure.
For the second quarter of FY25, Ola Electric reported a 5% drop in losses compared to last year, with the company posting a ₹495 crore loss, down from ₹524 crore in the same period last year. At the same time, revenue for the quarter grew by 38.5%, reaching ₹1,240 crore, up from ₹896 crore in Q2FY24.
During a call with investors, Bhavish Aggarwal, Chairman and Managing Director of Ola Electric, talked about the company’s focus on cost efficiency. He mentioned that operating costs remained flat or even slightly lower from one quarter to the next. He expects this trend to continue in the coming months, as the company works to expand its product range, grow its distribution, and increase revenue.
Despite the positive growth in revenue, Ola Electric’s stock dropped by 2.93%, closing at ₹67.24 on the Bombay Stock Exchange (BSE) on Thursday.
