Electric vehicle manufacturer Ola may dismiss up to 1000 workers to curtail financial losses.
Ola Electric Shifts Strategy Amidst Financial Challenges
In a bid to improve customer service and introduce a more well-rounded scooter product, Ola Electric, once a dominant player in the electric vehicle market, is considering a revised strategy. This move comes amidst financial difficulties, including internal control issues flagged by the company's auditor and cost-saving measures such as staff reductions and paused expansion plans.
The company, which went public in August 2024, has seen its stock plummet to an all-time low, 60 percent less than its peak. In a move to cut losses, Ola Electric is planning to lay off nearly 1,000 employees. However, the strategy change does not include any details about potential employee rehire plans.
The leadership of Ola Electric includes Bhavish Aggarwal as Chairman & Managing Director, Krishnamurthy Venugopala Tenneti and Arun Sarin as Non-Executive Directors, Manoj Kohli as Independent Director, and Ananth Narayanan as a newly appointed Independent Director focused on daily operations and strategy.
The potential strategy for Ola Electric includes simplifying its product line-up and, at present, does not involve the introduction of a third-generation of S1 e-scooters. The company has not yet announced any specific changes to its product delivery schedule, including the potential pushback of Roadster e-motorcycle deliveries.
The strategy change does not mention any specific improvements to customer service, nor does it include any information about its financial goals or recovery plans. The company reported a 50 percent surge in losses in December 2024, and in the month of February 2025, Ola Electric slipped down to the fourth spot in electric two-wheeler sales.
If Ola Electric persists with its current approach, it may face detrimental consequences. The focus of the company's strategy could shift towards delivering a more well-rounded scooter product, but the path forward remains uncertain.
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