Used car platform, Cars24, has played off 200 people just days after acquiring Team-BHP. The layoff was in the product and technology verticals and in a bid to cut costs, as per reports. The move also came after the company’s rival, Spinny, secured fresh funding of $131 million.
The layoffs come during Cars24’s measures to streamline operations following a Rs 498 crore net loss in FY24 despite revenue of Rs 6,917 crore, an increase of 25 percent.
Cars24 layoffs — More details
Vikram Chopra, the Founder and CEO of Cars24 said that the employees who were laid off would receive severance support, help with LinkedIn, mentorship, emotional wellness resources, and open positions within the network.
Elaborating more on the layoffs, Chopra, in a blog post said, 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…This is not about how hard someone worked. This is about the bets we placed and where we got it wrong.”
“We realised that 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. It is easy to blame the market or external factors. But the responsibility is ours,” Chopra added.
In an uncertain industry where layoffs have become common, Chopra says take the responsibility. He said, “When the plan doesn’t work, you don’t blame the players, you take responsibility, and change the plan.”
