Bad news for employees of THIS company as 200 to be sacked due to…not Narayana Murthy’s Infosys, Ratan Tata’s TCS, Google, Microsoft, IBM, Wipro, name is….

Cars24 has decided to let go of around 200 employees from different departments, including product and tech, as mentioned in a note from co founder and CEO Vikram Chopra. This move comes after the company realised that some projects weren’t working out as hoped, with roles created too early and other initiatives missing the mark. Chopra admitted that they couldn’t provide the professional growth and learning opportunities that some team members deserved, but they are offering severance support to those affected.

He made it clear that these layoffs are more of a one-time reset and not the beginning of a regular downsizing trend, assuring everyone that they don’t expect any more job cuts at this point. This decision follows Cars24’s push into new areas, like acquiring the automotive forum Team-BHP and branching into new car sales by connecting dealerships with manufacturers.

Looking ahead, Chopra is all about tightening the hiring process. He’s stressed that every job opening will be thoroughly evaluated with solid justifications and clear expectations moving forward. This shift shows Cars24 is following the trend of startups trying to control costs and streamline their operations in the current tough economic climate.

On the financial side, for the fiscal year ending March 31, 2024, Cars24 saw a 25% increase in operating revenue, hitting ₹6,917 crore thanks to higher sales and better average selling prices. However, the company’s net loss has also expanded to ₹498 crore from ₹468 crore the previous year, showing the struggle to stay profitable during such rapid growth. The layoffs come at a time when competition in the used car market is fierce; just look at rival Spinny, which recently raised $131 million, demonstrating ongoing investor interest while putting pressure on companies like Cars24 to keep growing and improving profit margins.

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