Cars24 Cuts 250 Jobs Amid Restructuring Push

Used-car marketplace Cars24 has laid off between 200 and 250 employees this month, mainly from its product and technology teams. CEO Vikram Chopra emphasized that the move is not performance-related but part of a broader restructuring effort.

"Over the past few weeks, we've had to part ways with around 200 employees across various functions. We are deeply grateful for their contributions. The layoffs are not about performance, but about structure and the bets we placed," Chopra stated.

The decision comes as Cars24 aims to recalibrate its operations ahead of a planned IPO. One source close to the company told Moneycontrol, "They have slowed down expansion plans in international markets like Australia and UAE. Also, the used-car market in India itself has slowed down."

Cars24 last raised $400 million in December 2021 from investors including SoftBank and Alpha Wave Global at a $3.3 billion valuation. Since then, market conditions for tech startups have tightened, pushing companies to prioritize profitability over aggressive expansion.

An internal source quoted by Inc42 explained:

"The leadership believes that becoming profitable faster is more critical now than aggressive expansion."

This move follows a similar event in May 2022, when Cars24 laid off nearly 600 employees, roughly 6-7% of its workforce. At the time, the company stated the action was based on performance evaluations, calling it a "business as usual" review.

Despite the ongoing cutbacks, Chopra remains confident about Cars24’s direction, saying:

"We are restructuring to make sure our teams are better aligned with our current priorities and goals."