Gensol EV, a subsidiary of the listed entity Gensol Engineering, has laid off around 50 employees of its total staff strength of 170, industry sources said.
The terminated employees are yet to get their full and final settlement. Sources said that a section of the employees have also not received their salaries since February.
When contacted a company spokesperson said, “Given the challenging circumstances we are navigating as a group, we have to undertake certain restructuring measures to ensure the long-term sustainability of our businesses. We have had to make the difficult decision to let go of 35-40% of our employee base at Gensol EV”.
On the delay in disbursing salaries, the company said, “We are committed to paying salaries to all our employees on time. While there may have been some delays, we are actively working on resolving this issue and ensuring that future payments are made promptly”.
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The development comes at a time when Gensol Engineering has recently seen its borrowing status downgraded to default by two rating agencies. Meanwhile, BluSmart, an all electric ride-hailing company, co-founded by Anmol Singh Jaggi and Puneet Singh Jaggi, who are also promoters of Gensol Engineering, has seen its previously announced restructuring of operations being called off, and multiple senior executives exiting the company.
Founded in 2012, Gensol Engineering is part of the Gensol group of companies, which offers engineering, procurement, and construction (EPC) services for the development of solar power plants. Expanding its operations, Gensol had established a greenfield electric vehicle (EV) manufacturing facility in Chakan, Pune, under its subsidiary Gensol EV, for the development and production of electric three wheelers and four wheelers. In January, the company unveiled its two models, a two-seater electric car EZIO and cargo vehicle EZIBOT, at the Bharat Mobility Global Expo. The company had announced that it has received 30,000 pre-orders for its newly launched EVs. However, the company has not been able to fulfill these orders as of yet, according to sources.
The company, however, stated that despite the current challenges, it plans to move forward with its EV production.
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