Olx Group, the online marketplace and classifieds business arm of Prosus, has cut around 800 jobs globally. Today’s move comes as the company started to close operations of its automotive business unit Olx Autos in some markets after long exploring potential buyers and investors, TechCrunch learned and as confirmed by the company.
The Amsterdam-headquartered company, which is operating in over 30 countries around the world, recently started informing the affected employees about the layoffs. They are not limited to a particular market or division, people familiar with the matter told TechCrunch.
An Olx spokesperson confirmed the job cuts to TechCrunch and said it resulted from the decision to exit Olx Autos that was announced in March.
“Earlier this year, we made the strategic decision to exit the Olx Autos business and potential buyers or investors have been explored since then,” the company said in a statement emailed to TechCrunch. “As a result of this process, it became clear that pursuing individual country sales was the best option, given the significant value that exists within local markets. This includes Chile, the financing business in Latin America, and both the Olx classifieds platforms and the Autos transaction businesses in India, Indonesia and Turkey.”
But Olx Group couldn’t find potential buyers or investors in other markets, meaning that the company has shut down its operations in Argentina, Mexico and Colombia. Although Olx Autos will continue to sell vehicles in these markets, the company will not be accepting any new transactions, as stated on the Olx Argentina website. As for other markets, it’s unclear what’s going to happen next.
“We are committed to supporting all impacted people throughout this transition,” the company said.
Olx did not confirm whether the move impacted any C-level officers. It also did not immediately respond to a query about its headcount following the latest round of layoffs.
In its annual report for the year ending on March 31, 2022, Prosus said its classifieds business — predominantly Olx — had 11,375 employees globally.
The new job cuts notably come just months after Olx confirmed plans to decrease its global workforce by 15% (1,500 jobs) in January.
In November, Prosus reported that Olx Autos saw 84% growth in revenue, reaching a significant milestone of $1 billion during the first half of its 2022 financial year. However, the automotive business has not yet achieved profitability.
Olx Group cuts 800 jobs as it shuts down some markets by Jagmeet Singh originally published on TechCrunch
