Pre-owned vehicle e-commerce platform Cars24 has laid off over 600 workers in India, citing “performance-related exits” on Thursday.
Cars24 employees over 9,000 employees in India, as well as the Middle East, Australia, and Southeast Asia.
When contacted for confirmation, the corporation replied, “This is business as usual performance-linked exits that happen every year.”
It did not specify which positions were most affected by the recent job layoffs as a result of the company’s annual performance evaluation, which occurs in April-May.
The company announced its annual ESOP (Employee Stock Ownership Plan) repurchase valued roughly Rs 75 crore in February this year as a way to reward its employees.
The company has conducted yearly ESOP buyback programmes for its current and former employees for the past four years, with a total buyback value of roughly Rs 113 crore.
The business provides a digital platform for pre-owned vehicle searches, purchases, sales, and financing.
Cars24 has roughly 205 branches in 182 major cities in India, according to its website, and over 4 lakh clients have used its platform.
According to multiple people familiar with the situation, investors are pushing businesses to slash costs and extend their runway by up to three years. According to the persons, many funding rounds that were about to be finished a few weeks ago are now being renegotiated, blocked, or cancelled.
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