Layoffs and workforce reductions are shaping up to be significant trends in 2025, as two prominent organizations, Ola Electric Mobility and Devon County Council, take drastic measures affecting nearly 2,000 employees altogether.
Ola Electric Mobility, one of India’s leading electric vehicle manufacturers, has announced plans to lay off around 1,000 employees—approximately 25% of its workforce. This move is part of a restructuring initiative intended to streamline operations amid financial challenges. The layoffs reflect broader difficulties within the industry, with Ola's stock hitting a 52-week low during intraday trading. Reports indicate the company's shares fell to ₹53.7 each before recovering slightly to close at ₹55.18, down by nearly 3%.
The restructuring efforts commenced back in November 2024 under the leadership of CEO Bhavish Aggarwal, aiming to reduce the financial burden on the company. Sources familiar with the situation indicate the layoffs will affect multiple departments across the organization, though specific details on which areas will be impacted remain unclear.
Meanwhile, closer to home, the Devon County Council has issued threats of fire and rehire to nearly 1,000 staff members. The council's administration is demanding employees to agree to less favorable terms and conditions, particularly concerning the council's car users’ allowance. Following the rejection of the proposed changes by union members, the council has taken the controversial step of warning employees they must submit to the new terms by March 23 or face notice of termination by March 31, 2025, with immediate dismissals effective July 1.
GMB union representatives have spoken out against these what they term as "bully boy tactics". Jake McLean, GMB Regional Organiser, articulated strong criticism of the council, saying, By threatening our members, Devon County Council is not only undermining morale but also risking the quality of care and support our community relies on. He continued, emphasizing the necessity for the council to return to negotiations saying, It’s time for Devon County Council to put their toys back in the pram, withdraw this threat and return to the negotiating table.
The dual announcements from Ola Electric and Devon County Council reflect larger trends appearing across various sectors, as organizations aim to cut costs and restructure operations amid economic pressures extending from previous years. The impact on employees, both directly through job losses and indirectly through shifting terms, is significant.
Labor relations experts are increasingly concerned about the “fire and rehire” practice being adopted by various employers, viewing it as detrimental not only to employee morale but also to the overall quality of services provided to the public. This method has previously been employed by companies like P&O Ferries, who dismissed 800 staff without prior consultation, raising alarms over worker treatment and rights.
It is not just the fear of losing jobs but also the broader question of how these practices will affect workplace culture and employee loyalty. Ola Electric’s layoffs may be viewed through this lens, as the company’s workforce reacts to the instability and uncertainty of its future.
Both companies are facing pushback from their respective unions and employee groups. GMB has pledged to do everything necessary to protect its members from Devon’s aggressive tactics, insisting on dignified treatment for all employees involved.
The developments within these two organizations signal potential shifts not just for those directly impacted, but also for industry standards and practices moving forward. While Ola Electric aims to rebuild its financial footing, Devon County Council’s actions could have long-standing effects on local governance and public service delivery.
Looking toward the future, how these layoffs and restructuring efforts play out will likely inform broader discussions within labor relations, corporate governance, and the ethical responsibilities of employers to their employees. The plight of those affected by the current layoffs reiterates the human cost of corporate restructuring as organizations navigate financial landscapes.
With March approaching, stakeholders, including employees, labor unions, and management, are closely watching developments, anticipating the next steps from these organizations. The coming days may clarify the extent of the fallout these layoffs and restructuring efforts will have on their respective markets and the overall labor economy.