Ola Electric completes cost-cutting program, saves Rs 90 crore monthly

Ola Electric Mobility on Wednesday informed the exchanges that it has finished the implementation of its cost reduction programme, launched in November 2024. The company said it has successfully implemented the Network Transformation and Opex Reduction Program, which delivered a sustainable cost reduction of Rs 90 crore a month.

The programme included shutting all regional warehouses and shipping vehicles, spare parts, and accessories from the factory directly to stores, automating registration and other processes, and productivity improvements in the sales and service network.

Furthermore, Ola Electric said that with the implementation of the new programme, the cost of average vehicle inventory has been slashed from approximately 35 to 20 days, and reducing delivery time for customers has changed from 12 days to 3-4 days.

Additionally, the company's daily registrations have increased to over 800 days crossing the average daily sales for January-February 2025.

In a restructuring exercise, Ola mentioned that it will be automating its customer relations operations, resulting in more layoffs.

Recently, a Bloomberg report said that the company is laying off over a thousand employees and contract workers across multiple departments such as customer relations, procurement, charging infrastructure, etc.

It would be the second round of layoffs in five months as the Bengaluru-based company battles crises on several fronts.

In November 2024, the Bhavish Agarwal-led company laid off around 500 employees as per the media reports.

The 2-wheeler EV maker's losses widened to Rs 564 crore in Q3 from Rs 376 crore in the corresponding quarter last fiscal. The Q3 FY 25 revenue declined by 19.4 percent to Rs 1,045 crore YoY.