Shares of Ola Electric Mobility on Monday declined more than 5 per cent in the mid session trade amid reports that the company is laying off over a thousand employees to pare its mounting losses.
The stock of Ola Electric Mobility plunged 5.5 per cent each to hit a 52-week low of ₹53.71 per share on both BSE and NSE.
After making a stellar debut on the stock exchanges in August last year, Ola Electric’s shares have tanked 66 per cent from the peak of ₹157.53 and ₹157.40 apiece on the BSE and NSE, respectively.
- Also read: Ola Electric to cut over 1,000 jobs to curb losses, sources say
The 30-share BSE Sensex index declined 224.16 points or 0.31 per cent to 72,973.94 and the NSE Nifty slipped 62.85 points or 0.28 per cent to 22,061.85.
According to reports, SoftBank-backed Ola Electric Mobility is laying off employees in several divisions, including customer relations, fulfilment and procurement.
This will be a second round of layoffs after the company in November last year laid off nearly 500 employees, the reports said, adding, the layoffs have been triggered due to automation of some of the company’s customer relation operations.
- Also read: Ola Electric sells over 25,000 units in February
Last week, Bhavish Aggarwal-led electric two-wheeler company said it sold 25,000 units in February and reached a market share of over 28 per cent, cementing its leadership in the electric two-wheeler segment.
The company said it achieved the sales milestone on the back of S1 portfolio and sales-and-service network of 4,000 stores across the country.
The company has recently announced the renegotiation of contracts with its vehicle registration agencies. The move is aimed at reducing costs and streamline the registration process, it said.