Cars24, a leading e-commerce platform for pre-owned vehicles, has announced the layoff of approximately 200 employees across various departments.
This decision comes as part of a strategic restructuring exercise aimed at aligning the company’s operations with long-term goals.
The layoffs, which primarily affected product and technology teams, reflect Cars24’s efforts to streamline its structure and focus on sustainable growth.
Reasons Behind the Layoffs at Cars24
In an internal note to employees, Cars24 co-founder and CEO Vikram Chopra explained the rationale behind the layoffs.
He acknowledged that certain projects and roles introduced prematurely did not meet expectations, while others failed to deliver the desired outcomes.
Vikram emphasized that the decision was not driven by cost-cutting but was a deliberate reset to address structural inefficiencies.
He stated, “We’ve always believed in moving fast and building big. However, speed without clarity is expensive, and when the math doesn’t add up, it is on us to reset.”
He added that the layoffs were a specific and intentional measure, not the beginning of a broader reduction plan.
Cars24 Layoffs: Support for Affected Employees
Cars24 has pledged comprehensive support for the affected employees to ensure a smooth transition.
The company is offering severance packages, assistance with resume building and LinkedIn updates, mentorship opportunities, and access to open roles within its network.
Emotional wellness resources have also been made available to help employees navigate this challenging period.
Financial Performance and Market Context
The layoffs come amid Cars24’s efforts to address financial challenges and intensifying competition in the used-car marketplace.
For the fiscal year ending March 31, 2024, Cars24 reported a 25% increase in operating revenue to ₹6,917 crore, driven by higher unit sales and average selling prices.
However, the company’s net loss widened to ₹498 crore, up from ₹468 crore in FY23.
Rising expenses, which grew by 23.3% year-on-year to ₹7,461 crore, have further strained the company’s financials.
Strategic Initiatives
Despite the layoffs, Cars24 remains committed to innovation and growth.
The company recently acquired Team-BHP, India’s largest automotive forum, to enhance its product, technology, and AI capabilities.
Cars24 has also expanded its offerings with the launch of a super app consolidating ancillary services such as vehicle repairs, financing, and insurance payments.
Additionally, the company has entered the new car sales segment and is exploring international markets, including Indonesia.
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