Bhavish Aggarwal-led Ola Electric has laid off 5% of its workforce as part of an ongoing “structural transformation”. The layoffs are expected to affect 620 jobs, with the electric vehicle maker having about 12,396 employees until last year.
“The company is doubling down on speed and discipline through increased automation of its front-end operations. As part of this ongoing structural transformation, approximately 5% of the workforce will be impacted,” the company said in a statement.
Ola Electric said it remains focused on delivering a stronger customer experience and building a leaner organization positioned for long-term profitable growth. The layoffs come as the electric vehicle maker has seen a steady decline in market share over the past three months, with retail sales remaining below 10,000 units for the third consecutive month in January.
According to VAHAN data, Ola Electric registered 7,221 units as of January 31, 2026. Its rival Ather Energy recorded 20,786 electric vehicle registrations during the same period, almost three times more sales than Ola. Market leader TVS Motor Company sold 33,286 electric scooters in January. Bajaj Auto, the maker of the Chetak electric scooter, comes second with 24,211 electric vehicle registrations. Hero MotoCorp recorded 12,608 electric vehicle registrations in January.
While Ola Electric is losing the charge, its rival Ather Energy is taking the lead. Ola’s declining sales and Ather’s rise in India’s electric two-wheeler race are a case study of two IITian founders choosing different paths to build their businesses. While Aggarwal spread himself too thin in announcing his ambitions to venture into chip manufacturing, artificial intelligence, cloud, cell manufacturing and battery energy storage systems, Mehta took a more focused and frugal approach.
Ola’s attrition rate is also among the highest in the industry. In FY25, the company experienced a workforce attrition rate of 54%, up from 44% in FY24. At the senior level, the company saw some high-profile departures. Its chief financial officer, Harish Abichandani, resigned with effect from January 19, 2026. The company’s chief technology and product officer and chief marketing officer resigned last year.
Some of these positions still remain vacant. The employee attrition rate at Ather Energy was 12.5% in FY25 compared to 18.4% in FY24.
