Ola Electric: A Rollercoaster of Layoffs and Leadership Initiatives
March 6, 2025, 4:23 pm
Location: India, Karnataka, Bengaluru
Employees: 1001-5000
Founded date: 2017
Total raised: $3.07B
Ola Electric is in the spotlight, but not for the right reasons. The electric vehicle (EV) manufacturer is facing turbulent times, marked by significant layoffs and a controversial management initiative. The company has trimmed its workforce by nearly 1,300 employees, following a previous round of cuts that saw 500 workers let go just a few months earlier. This is not a new trend for Ola; it’s a cycle of hiring and firing that has become all too familiar.
The latest layoffs come as Ola reported a staggering 50% increase in losses, reaching ₹564 crore in the third quarter of FY25. This follows a slight improvement in the previous quarter, where losses were reduced by 5% year-on-year. Despite the company's efforts to expand—opening 3,200 new stores in December—the financial strain has forced it to optimize its workforce. The company now employs around 4,000 people, including contract workers, but this number is shrinking rapidly.
The restructuring is not just a one-off event. Ola Electric has previously conducted similar layoffs in July and September of 2022, cutting around 1,000 jobs and shutting down three business verticals. The focus has consistently been on streamlining operations to enhance profitability in the competitive EV market. Yet, the repeated layoffs raise questions about the company's long-term strategy and stability.
In the wake of these layoffs, Ola's stock has taken a hit. Shares closed at ₹55.18, marking a 52-week low. Investors are clearly uneasy, as the company’s market value has plummeted by 66% from its peak of ₹157.53. The volatility of Ola Electric's stock reflects broader concerns about the sustainability of its business model.
Adding to the drama, CEO Bhavish Aggarwal has introduced a new initiative called "Kya Chal Raha Hai?"—a weekly reporting system for employees. This initiative requires staff to send brief updates to Aggarwal, detailing their completed tasks in 3 to 5 bullet points. While the intent may be to foster accountability and transparency, the move has drawn comparisons to Elon Musk's controversial management style. Musk's own ultimatum to federal employees—report your progress or resign—has been met with backlash, and now Aggarwal seems to be treading a similar path.
The response to this initiative has been mixed. Some employees may appreciate the clarity it brings, while others view it as a top-down approach that stifles creativity. Social media reactions have been rife with mockery, with critics accusing Aggarwal of lacking originality. The sentiment echoes a broader frustration with what some perceive as a culture of imitation in Indian business practices.
As Ola Electric navigates these choppy waters, the question remains: can it turn things around? The EV market is growing, but competition is fierce. Companies like Tesla and newer entrants are vying for market share, and consumer expectations are high. Ola must not only cut costs but also innovate and differentiate itself in a crowded field.
The company’s focus on electric vehicles is commendable, but it must also address its internal challenges. Layoffs can be a necessary evil in business, but they can also lead to a loss of morale and institutional knowledge. The constant churn of employees can create an unstable work environment, making it difficult for the company to build a cohesive team.
Moreover, the reliance on a top-down reporting system may not foster the kind of innovative thinking that is crucial in the tech-driven EV sector. Employees need to feel empowered to share ideas and take risks. A culture of fear, where workers are anxious about job security, can stifle creativity and lead to further disengagement.
Ola Electric's journey is a cautionary tale for startups and established companies alike. Rapid growth can be intoxicating, but it must be managed carefully. The balance between expansion and sustainability is delicate. As the company moves forward, it must learn from its past mistakes and focus on building a resilient workforce.
In conclusion, Ola Electric is at a crossroads. The layoffs and new management initiatives signal a company in flux. While the EV market holds promise, Ola must navigate its internal challenges with care. The road ahead is fraught with obstacles, but with the right strategy, it can emerge stronger. The key will be to foster a culture of innovation and accountability, rather than one of fear and uncertainty. Only then can Ola Electric hope to reclaim its place in the fast-evolving world of electric vehicles.
The latest layoffs come as Ola reported a staggering 50% increase in losses, reaching ₹564 crore in the third quarter of FY25. This follows a slight improvement in the previous quarter, where losses were reduced by 5% year-on-year. Despite the company's efforts to expand—opening 3,200 new stores in December—the financial strain has forced it to optimize its workforce. The company now employs around 4,000 people, including contract workers, but this number is shrinking rapidly.
The restructuring is not just a one-off event. Ola Electric has previously conducted similar layoffs in July and September of 2022, cutting around 1,000 jobs and shutting down three business verticals. The focus has consistently been on streamlining operations to enhance profitability in the competitive EV market. Yet, the repeated layoffs raise questions about the company's long-term strategy and stability.
In the wake of these layoffs, Ola's stock has taken a hit. Shares closed at ₹55.18, marking a 52-week low. Investors are clearly uneasy, as the company’s market value has plummeted by 66% from its peak of ₹157.53. The volatility of Ola Electric's stock reflects broader concerns about the sustainability of its business model.
Adding to the drama, CEO Bhavish Aggarwal has introduced a new initiative called "Kya Chal Raha Hai?"—a weekly reporting system for employees. This initiative requires staff to send brief updates to Aggarwal, detailing their completed tasks in 3 to 5 bullet points. While the intent may be to foster accountability and transparency, the move has drawn comparisons to Elon Musk's controversial management style. Musk's own ultimatum to federal employees—report your progress or resign—has been met with backlash, and now Aggarwal seems to be treading a similar path.
The response to this initiative has been mixed. Some employees may appreciate the clarity it brings, while others view it as a top-down approach that stifles creativity. Social media reactions have been rife with mockery, with critics accusing Aggarwal of lacking originality. The sentiment echoes a broader frustration with what some perceive as a culture of imitation in Indian business practices.
As Ola Electric navigates these choppy waters, the question remains: can it turn things around? The EV market is growing, but competition is fierce. Companies like Tesla and newer entrants are vying for market share, and consumer expectations are high. Ola must not only cut costs but also innovate and differentiate itself in a crowded field.
The company’s focus on electric vehicles is commendable, but it must also address its internal challenges. Layoffs can be a necessary evil in business, but they can also lead to a loss of morale and institutional knowledge. The constant churn of employees can create an unstable work environment, making it difficult for the company to build a cohesive team.
Moreover, the reliance on a top-down reporting system may not foster the kind of innovative thinking that is crucial in the tech-driven EV sector. Employees need to feel empowered to share ideas and take risks. A culture of fear, where workers are anxious about job security, can stifle creativity and lead to further disengagement.
Ola Electric's journey is a cautionary tale for startups and established companies alike. Rapid growth can be intoxicating, but it must be managed carefully. The balance between expansion and sustainability is delicate. As the company moves forward, it must learn from its past mistakes and focus on building a resilient workforce.
In conclusion, Ola Electric is at a crossroads. The layoffs and new management initiatives signal a company in flux. While the EV market holds promise, Ola must navigate its internal challenges with care. The road ahead is fraught with obstacles, but with the right strategy, it can emerge stronger. The key will be to foster a culture of innovation and accountability, rather than one of fear and uncertainty. Only then can Ola Electric hope to reclaim its place in the fast-evolving world of electric vehicles.