Electric two-wheeler manufacturer implements organizational restructuring as sales decline and competition intensifies
Ola Electric, one of India’s prominent electric vehicle manufacturers, has confirmed plans to reduce its workforce by approximately 5 percent as part of a broader organizational overhaul focused on automation and operational efficiency.
Strategic Shift Toward Automation
The Bengaluru-based company attributes the workforce reduction to its “ongoing structural transformation,” which emphasizes increased automation across customer-facing operations. While the exact number of affected employees remains undisclosed, the move signals a significant strategic pivot for the electric mobility startup.
The company has not provided details about which specific departments or roles will face the most significant impact from this restructuring initiative.
Market Performance Under Pressure
The workforce adjustment comes at a challenging time for Ola Electric, which has experienced substantial market difficulties over the past year:
Sales Performance:
- Unit sales plummeted to 1,99,316 in 2025, representing a steep 51 percent decline from 4,07,700 units sold in 2024
- The dramatic sales drop reflects intensifying competition in India’s rapidly evolving electric two-wheeler market
Market Position:
- Market share contracted from 35 percent to 15.57 percent within a year
- The company has slipped from market leadership to fourth position in the electric two-wheeler segment
- Rivals have successfully captured significant portions of Ola’s previously dominant market position
Customer Service Concerns
Beyond sales challenges, Ola Electric has faced ongoing criticism regarding after-sales service and customer support quality. While company representatives claim substantial progress in addressing customer grievances, the planned workforce reduction has sparked concerns about potential service deterioration.
The timing appears particularly sensitive, given that the brand is actively working to restore customer trust and improve service center experiences across its network.
Ambitious Product Pipeline Remains Intact
Despite current challenges, Ola Electric maintains an aggressive product development roadmap:
Upcoming Launches:
- A compact electric car designed for the mass market
- The Diamondhead concept motorcycle, featuring premium specifications including:
- Aerospace-grade materials (titanium, magnesium, carbon fiber)
- Claimed 0-100 kph acceleration under 2 seconds
- Estimated pricing around Rs 5 lakh
Industry Context and Future Outlook
Workforce reductions have become increasingly common across the technology sector, with global leaders like Amazon and Google implementing similar measures. Such organizational changes don’t automatically indicate financial distress and often reflect strategic adaptation to evolving market conditions and technological advancement.
However, when examined alongside Ola Electric’s declining sales figures, shrinking market presence, and ongoing service-related challenges, the workforce reduction raises legitimate questions about the company’s trajectory and competitive positioning in India’s crowded electric vehicle landscape.
The success of Ola Electric’s automation strategy and its ability to reverse current market trends while maintaining service quality will likely determine whether this restructuring represents a necessary evolution or a symptom of deeper challenges facing the once-dominant market leader.
