Layoffs of around 200 employees announced by Cars24 during reorganization process.
What's Happening with CARS24: A shakeup in the autotech scene as CARS24, an e-commerce platform for pre-owned vehicles, bids farewell to around 200 employees, Nicke giving a frank nod to this tough move. He addressed the situation in a heartfelt blog post, acknowledging the valuable contribution each teammate made.
"It's a bitter pill to swallow, parting ways with almost 200 of our dedicated folks across various functions. But it's necessary, baby. This is all about realigning our squad and structure with our long-term goals, and correcting our mistakes where we stumbled," Nicke wrote.
Nicke denies this decision as a quick fix to save a few bucks but instead envisions it as a strategic move to streamline operations, focusing on what truly matters.
Cars24 offers a smorgasbord of services, ranging from buying and selling cars to insurance, driver-on-demand, and more. However, Nicke admitted that not all projects were gold mines and some roles were misplaced, just like a few cats and dogs residing in the wrong parks.
Rumors of additional layoffs have been swatted away, as Nicke emphasized this was a one-time reset, not a constant roller coaster ride. Support for those affected includes severance packages, career assistance, LinkedIn help, mentorship, emotional well-being resources, and even job opportunities within its growing network.
Cars24 reported a loss of Rs 498 crore in FY24, compared to Rs 468 crore in FY23, a slight jump of 6.4%. The company's expenses saw a notable increase of 23.3% to Rs 7,461 crore, compared to Rs 6,053 crore in FY23. However, their total income soared by 25.1%, reaching Rs 6,917 crore, compared to Rs 5,530 crore in FY23. Revenue from car sales spiked by 24%, reaching Rs 6,400 crore last fiscal, compared to Rs 5,164 crore in FY23.
In December 2021, the company bagged a whopping $450 million at a valuation of $3.3 billion, backed by major investors like Alpha Wave, SoftBank, Tencent, and DST Global, among others. Cars24 is now branching out by acquiring Team-BHP and launching new car sales platforms, demonstrating a hunger to conquer new markets and expand its business portfolio.
- "Nicke Chopra, the founder of CARS24, has outlined a strategic restructuring plan, aiming to streamline operations and refocus on core business areas, as part of the recent layoffs involving around 200 employees."
- "As part of the restructuring process, CARS24 is providing various support mechanisms for affected employees, including severance packages, career assistance on LinkedIn, mentorship, emotional well-being resources, and job opportunities within the company's expanding network."
- "Despite reporting a slight increase in losses and expenses, CARS24 has experienced a notable surge in total income and revenue from car sales, hinting at the company's potential for growth in the autotech business and its new market ventures."
- "To further bolster its market presence, CARS24 has made strategic moves such as the acquisition of Team-BHP and the launch of new car sales platforms, showcasing an ambitious appetite for business expansion in the technology sector."
