Shares of Ola Electric Mobility Ltd experienced a significant decline of over 5% on Monday, reaching a 52-week low of ₹53.71 per share on both the BSE and NSE.
This downturn coincides with reports indicating that the company plans to lay off more than 1,000 employees and contract workers in an effort to improve profitability.
This marks the second round of layoffs for Ola Electric in a span of five months. The company had previously reduced its workforce by approximately 500 employees in November 2024. As of December 31, 2024, Ola Electric’s workforce stood at 3,824 employees, reflecting a 1.8% decrease from the previous year.
The latest job cuts are reported to affect multiple departments, including procurement, fulfillment, customer relations, and charging infrastructure. These measures come as the company continues to face high operational costs and has yet to achieve profitability.
In the December 2024 quarter (Q3 FY25), Ola Electric reported a net loss of ₹562 crore, widening from ₹374 crore in the same period the previous year. Revenue from operations declined by 19.36% to ₹1,045 crore, down from ₹1,296 crore year-over-year.
Since its public listing on August 9, 2024, Ola Electric’s stock has experienced a decline of approximately 30%. The recent announcement of layoffs and the company’s ongoing financial challenges have contributed to the stock’s downward trajectory, culminating in the recent 5.5% drop to its 52-week low.
Investors and market analysts are closely monitoring Ola Electric’s strategic measures aimed at cost reduction and achieving profitability, as these will be critical factors influencing the company’s future stock performance.
