 "Ola Electric layoffs: Here's why Bhavish Aggarwal-led company is set to cut 500 job")
Bhavish Aggarwal-led Ola Electric Mobility is set to conduct layoffs, eliminating 500 positions across various departments and levels.
The downsizing commenced in the September quarter, with the process beginning around July, and is anticipated to conclude by the end of this month. A source indicated that the company has been gradually removing redundant roles across verticals and levels, according to PTI.
The upcoming job cuts are a part of a restructuring initiative aimed at optimising its workforce and enhancing profitability, according to individuals familiar with the matter.
Ola Electric sells three models of electric scooters at the moment, and, in August, had announced its foray into the electric motorcycle segment.
Ola Electric Mobility shares rose 2.56 per cent at Rs 68.96 per share on the BSE in Friday’s intraday deals following reports of layoffs. The company made its debut on the bourses a little over two months ago on August 9.
Ola Electric under scrutiny
This development comes amid heightened scrutiny over Ola Electric’s after-sales service quality. Last month, the Central Consumer Protection Authority (CCPA) had issued a notice to the electric two-wheeler manufacturer following over 10,000 complaints regarding quality and after-sales service issues.
Key grievances include charging during free service periods, delays in warranty services, inadequate repairs, recurrent defects, misleading performance claims, overcharging, and battery-related issues. Consumers also reported unprofessional conduct, unresolved complaints, and failure to provide refunds or accurate documentation.
In response, Ola Electric reported that it had resolved 99.1 per cent of the 10,644 complaints received from the CCPA.
The company has also faced safety-related challenges. In October last year, an Ola electric scooter caught fire in Pune, which the manufacturer attributed to the use of aftermarket parts leading to a short circuit.
Impact Shorts
More ShortsAdditionally, in May 2022, incidents of front fork failures were reported, which Ola Electric stated were due to “high-impact accidents” and were isolated cases.
With inputs from PTI
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