CARS24 Implements Layoffs of Nearly 200 Employees Amid Restructuring
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Synopsis
CARS24 has laid off nearly 200 employees in a restructuring effort aimed at achieving long-term goals. The decision is not a cost-cutting measure, but rather an alignment of the team with the company's vision. Affected employees are being offered support and resources.
Key Takeaways
- 200 employees laid off during restructuring.
- CEO Vikram Chopra emphasizes gratitude towards affected staff.
- The layoffs are focused on aligning with long-term goals, not cutting costs.
- Support offered includes severance and mentorship.
- Company reports ₹498 crore loss in FY24.
New Delhi, April 26 (NationPress) The autotech platform CARS24 has made the difficult decision to part ways with nearly 200 employees across various departments as part of a comprehensive restructuring initiative aimed at achieving its long-term objectives.
The e-commerce site specializing in pre-owned vehicles described this as a challenging time.
Vikram Chopra, the co-founder and CEO of CARS24, expressed in a blog post, “In recent weeks, we have faced the tough choice to let go of around 200 teammates across different functions. Each individual affected has dedicated their time, effort, and faith to this organization. This is truly appreciated, and we are sincerely thankful.”
He clarified that this move is not merely a cost-cutting measure but rather a strategic alignment of the team and structure with the company’s long-term vision, addressing areas where focus has been lost.
CARS24 provides a variety of services, such as the buying and selling of used cars, financing, insurance, driver-on-demand, and more.
Chopra added that in recent months, “we discovered that some projects did not yield the anticipated results. Certain roles were introduced prematurely. Some assumptions simply did not hold up under scrutiny. In some instances, we could not provide the growth or learning opportunities that individuals genuinely merit.”
He assured that no further layoffs are anticipated at this time, stating, “This was a deliberate, specific reset, not the start of a continuous layoff strategy.”
For those affected, the company is extending severance support, assistance with resumes and LinkedIn profiles, mentorship, emotional wellness resources, and access to job openings within its network.
The online pre-owned vehicle retailer reported a loss of ₹498 crore in FY24, compared to ₹468 crore in FY23, marking a 6.4 percent increase. The company’s expenses rose by 23.3 percent year-on-year to ₹7,461 crore, up from ₹6,053 crore in FY23, according to its financial reports.
The firm's income grew by 25.1 percent to ₹6,917 crore, up from ₹5,530 crore in FY23. Revenue from car sales increased by 24 percent to ₹6,400 crore last fiscal, compared to ₹5,164 crore in FY23.
In December 2021, CARS24 secured $450 million in funding at a valuation of $3.3 billion. Its primary investors include Alpha Wave, SoftBank, Tencent, and DST Global, among others.
