(Reuters) – India’s top electric scooter maker Ola Electric plans to cut about 500 jobs as it seeks to prioritise profitability, local business news publication Moneycontrol reported on Thursday, citing sources.
Ola Electric had 4,011 on-roll employees as of March 2024, according to its latest IPO document from August. The company declined to comment on the reports.
The company’s stock ended 3% lower at its lowest-ever closing price of 67.23 rupees.
The SoftBank-backed firm has yet to turn a profit due to high costs and reductions in EV subsidies. Using in-house batteries for its scooters will be key to bringing down costs and becoming profitable, Ola has said.
Ola Electric is navigating regulatory hurdles following its stellar stock market debut in August, while its dominance of India’s growing electric two-wheeler market is fading.
Several consumer complaints have led India’s top product certification agency to probe Ola’s deficiency in service standards and product issues. Rivals launching models priced closer to Ola’s have narrowed its lead.
Ola Electric reported a narrower loss in the July-September quarter as sales jumped.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Abinaya Vijayaraghavan)
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