Layoffs: CARS24 Fires Almost 200 Employees, Says Decision Not Driven By Cost-Cutting

Describing it as a "tough moment," the e-commerce platform for pre-owned vehicles emphasised that the move was not driven by cost-cutting pressures.

To support those affected, CARS24 is offering severance packages, resume and LinkedIn profile assistance, mentorship, emotional wellness resources, and access to job openings across its broader network.

Source : Freepik

Autotech company CARS24 fired nearly 200 employees across multiple departments, as part of a broader reorganisation aimed at achieving its long-term vision.

Describing it as a "tough moment," the e-commerce platform for pre-owned vehicles emphasised that the move was not driven by cost-cutting pressures, reported IANS.

"Over the past few weeks, we have had to make the difficult decision to part ways with around 200 of our teammates across various functions. Every person impacted gave this company their time, energy, and belief. That matters deeply, and we are genuinely grateful," said Vikram Chopra, co-founder and CEO of CARS24, in a blog post.

Chopra clarified that the layoffs were about "aligning the team and structure with our long-term goals, and correcting where we’ve lost focus," rather than cutting costs. The company offers an extensive range of services, including buying and selling used cars, financing, insurance, and driver-on-demand facilities.

No Further Layoffs Planned, Says CEO

Explaining the reasons behind the restructuring, Chopra said the company realised over the past few months that some initiatives did not meet expectations. “Some projects did not deliver what we expected. Some roles were added too early. A few hypotheses simply didn’t hold when tested. And in some cases, we couldn’t offer the kind of growth or learning that people truly deserve,” he added.

He also reassured employees that no additional layoffs are planned, stressing, “this was a specific, intentional reset, not the beginning of a rolling plan.” To support those affected, CARS24 is offering severance packages, resume and LinkedIn profile assistance, mentorship, emotional wellness resources, and access to job openings across its broader network.

Financial Performance Shows Mixed Results

CARS24’s latest financial results reflect a mixed picture. The platform reported a loss of Rs 498 crore for FY24, a 6.4 per cent increase from Rs 468 crore in FY23. Meanwhile, overall expenses surged 23.3 per cent year-on-year, rising to Rs 7,461 crore from Rs 6,053 crore in the previous financial year.

However, the company's revenues have also seen a significant uptick. Income rose by 25.1 per cent to Rs 6,917 crore in FY24, compared to Rs 5,530 crore in FY23. Specifically, income from car sales increased by 24 per cent, reaching Rs 6,400 crore, up from Rs 5,164 crore the previous year.

In December 2021, CARS24 secured $450 million in funding at a $3.3 billion valuation. Major backers of the platform include Alpha Wave, SoftBank, Tencent, and DST Global.