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Online marketplace, OLX strategically exit the Auto business, cutting around 800 jobs

Online marketplace OLX Group is exiting its Olx Autos business and discontinuing operations in several countries, including Chile, India, Indonesia, and Turkey, as it seeks to optimize its operations and focus on local market sales.

Edited By: Saumya Nigam @snigam04 New Delhi Published on: June 21, 2023 6:42 IST
olx, layoff, auto business
Image Source : OLX OLX strategically exit the Auto business, cutting around 800 jobs

OLX Group, an online marketplace, along with Prosus, the classifieds business arm of the global investment group, recently announced a reduction of approximately 800 jobs worldwide. This decision comes as OLX Group begins to wind down its automotive business arm, Olx Autos, in various regions after an extensive search for potential buyers and investors.

TechCrunch reported that earlier this year, OLX Group made a strategic choice to exit the Olx Autos business and has since explored options for buyers and investors. After careful evaluation, the company concluded that pursuing individual country sales would be the optimal approach, considering the substantial value present in local markets. This will involve discontinuing operations in certain areas, including Chile, the financing business in Latin America, and both the Olx classifieds platforms and Autos transaction businesses in India, Indonesia, and Turkey.

The Netherlands-based company, which operates in more than 30 countries globally, has started notifying affected employees about the layoffs. These job cuts are not limited to a specific market or division, impacting various regions where OLX Group operates.

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According to Prosus' annual report for the year ending on March 31, 2022, their classifieds business, primarily OLX, employed 11,375 individuals worldwide.

Earlier in January, OLX Group had confirmed plans to reduce its workforce by 15%, amounting to over 1,500 employees globally, including in India. This restructuring initiative was undertaken due to the global economic downturn and concerns about a recession.

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The decision to cut jobs and phase out Olx Autos is part of OLX Group's broader strategic realignment, focusing on optimizing its operations and prioritizing growth areas. As the company continues to adapt to market conditions, it aims to strengthen its position in key markets while seeking opportunities for expansion and innovation in the online marketplace industry.

Inputs from IANS

 

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