In a move to streamline its operations and accelerate its path to profitability, Ola Electric officially announced on Friday, January 30, 2026, that it is laying off approximately 5% of its workforce.
The restructuring is part of a broader “structural transformation” led by CEO Bhavish Aggarwal, aimed at replacing manual front-end processes with advanced automation. Based on the company’s current headcount, the move is estimated to impact between 175 and 620 employees across various departments.
1. The Core Reason: Automation Over Headcount
The primary driver for this layoff is what the company calls “doubling down on speed and discipline.”
- Front-End Automation: Ola is integrating AI and automated systems into its sales, service, and administrative operations to reduce human intervention.
- Leaner Organization: The company stated the goal is to build a more agile structure positioned for long-term, profitable growth as it moves away from its high-burn startup phase.
- Efficiency Gains: Ola claimed that its “Hyperservice” reset has already led to 80% same-day resolution for service requests nationwide, reducing the need for a massive manual support staff.
2. Market Context: A 51% Sales Slump
The layoffs come at a time of significant market pressure for the Bengaluru-based EV giant.
- Market Share Erosion: Once commanding nearly 40% of the Indian e-scooter market, Ola Electric’s share plummeted to just 6.1% in January 2026, according to Vahan data.
- The Rise of Rivals: Legacy players like Bajaj Auto and TVS Motor, along with rival Ather Energy, have overtaken Ola in monthly registrations, capturing a combined 67% of the market this month.
- Revenue Guidance: In its Q2 FY26 earnings, the company slashed its full-year revenue target to ₹3,000–₹3,200 crore, down from an earlier projection of ₹4,700 crore.
3. Senior Leadership Turmoil
The workforce reduction follows a string of high-profile departures from the company’s C-suite:
- CFO Exit: Chief Financial Officer Harish Abichandani resigned effective January 19, 2026, citing personal reasons. He was replaced by Deepak Rastogi.
- Other Exits: The past year has seen the departures of Chief Marketing Officer (CMO) Anshul Khandelwal and Chief Technology Officer (CTO) Suvonil Chatterjee.
- Stock Pressure: These exits, combined with service quality complaints and falling sales, have pushed Ola Electric’s share price down by more than 57% since its IPO in August 2024, with the stock closing at ₹32.51 on Friday.
4. History of Restructuring
This is not the first time Ola Electric has downsized to curb losses:
- March 2025: Laid off over 1,000 employees and contract workers.
- November 2024: Cut roughly 500 jobs across various departments.
- Total Impact: Including the current 5% cut, the company has reduced its total workforce by nearly 2,000 positions since late 2024.
Conclusion: A Bet on “Bharat Cell”
Despite the layoffs and declining scooter sales, Ola Electric is shifting its long-term bet to in-house technology. The company recently announced it would begin selling its proprietary 4680 Bharat Cells to other businesses and startups. By becoming a leaner, automation-first organization, Aggarwal is betting that the company can survive the “EV winter” and emerge as a profitable energy-and-tech firm rather than just a hardware manufacturer.
