Cars24 fired 200 employees, told the reason for the layoff

Cars24, a company that sells and purchases used cars, is reducing its workforce. Cars24 has shown the way out to employees from many of its departments. It is being said that the company has laid off about 200 employees who were from different departments. The purpose behind the layoffs is being told to be a restructuring practice so that the company’s operations can run properly. The co-founder of Cars24 has confirmed the layoffs. Let’s know in detail.

Cars24, a startup that does business of used cars, has fired 200 of its employees. According to ET report, Cars24 co-founder Vikram Chopra has confirmed this layoff. Vikram Chopra informed through a blog post that employees of various functions have been affected due to the restructuring activity. The post reads, “Over the past few weeks, we have had to make the difficult decision to separate from nearly 200 of our colleagues across various functions.”

Vikram Chopra further said that some projects did not yield the expected results in the last few months, resulting in very quick recruitment for some positions. Chopra said, ‘We have always believed in moving fast. We have always tried to build something big. But the bitter truth is that speed without clarity is very expensive. And when the math does not add up, it is our job to reset it. ‘

The SoftBank-backed startup claims that it is providing outplacement services as well as severance packages to the outgoing employees. Cars24, founded in 2015 by Vikram Chopra, Ruchit Agarwal, Gajendra Jangid and Mehul Agarwal, is an online marketplace for buying and selling used cars. Earlier this year, the IPO-bound startup also entered the ‘new car’ market. This news of layoffs comes just days after the company acquired domestic automotive firm Team-BHP. However, no information about this deal was given out by the company.

Layoffs are continuing in such startups. Last year also, about 30 startups had shown the way out to more than 9000 employees. Of these, 60 percent had done layoffs for cost cutting and earning profit.