Amid the global meltdown and recession fears, many tech companies are laying off workers across the globe including tech giants like Meta and Twitter, and today online marketplace OLX Group has cut around 800 jobs globally. And this really doesn’t come as a huge surprise because this 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.
OLX is part of OLX Group, a network of leading marketplaces present in 30+ countries with 20+ brands, has reportedly started informing the affected employees about the layoffs who are not limited to a particular market or division, with Olx spokesperson confirming the job cuts saying that 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. 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.
Olx Group Statement
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.
The company said: “We are committed to supporting all impacted people throughout this transition.”
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.
