New Delhi, Mar 3 (PTI) Shares of Ola Electric Mobility on Monday fell more than 3 per cent on Monday after reports that the company is planning to cut around 1,000 jobs across different functions as part of a restructuring exercise to reduce losses.

Ola Electric Mobility's shares slipped 3.40 per cent to close at Rs 54.90 apiece on the National Stock Exchange (NSE). On the BSE, it fell 2.94 per cent to settle at Rs 55.18 per piece.

During the day, shares of Ola Electric Mobility plunged 5.5 per cent to hit a 52-week low of Rs 53.71 per piece on both BSE and NSE.

Since its listing on the stock exchanges in August last year, Ola Electric's shares have tanked 66 per cent from the peak of Rs 157.53 and Rs 157.40 apiece on the BSE and NSE, respectively.

In volume terms, nearly 2.9 crore equity shares of Ola Electric Mobility were traded on the NSE, and 57.63 lakh shares exchanged hands on the BSE during the day.

The 30-share BSE Sensex benchmark declined 112.16 points or 0.15 per cent to close at 73,085.94 on Monday. The NSE Nifty slipped 5.40 points or 0.02 per cent to end at 22,031.10.

Ola Electric Mobility is cutting around 1,000 jobs across different functions as part of a restructuring exercise to reduce losses, according to sources.

When contacted, the company, which had last year trimmed around 500 jobs, without commenting on the exact number of redundancies in the latest round, hinted that these were a result of restructuring and automation of front-end operations.

"We have restructured and automated our front-end operations delivering improved margins, reduced cost, and enhanced customer experience while eliminating redundant roles for better productivity," a spokesperson of Ola Electric Mobility said.

The second round of job cuts in the company within five months comes at a time when Ola Electric has been taking strategic moves to boost EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins by almost 10 percentage points, besides improving inventory management and faster customer deliveries.

The company has eliminated its regional warehouses across India, deciding to leverage its 4,000 retail stores nationwide for maintaining vehicle inventory, spare parts, accessories, and last-mile deliveries.

It has also renegotiated contracts with vehicle registration agency partners to streamline the process and further reduce costs. PTI HG DRR

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