OLX Group, the parent company of the online marketplace, and the classifieds business arm of Prosus (global investment group) has decided to lay off 800 employees globally. This comes after the company shut down its automotive business unit OLX Autos in a few regions.
Earlier this year, OLX announced that they will lay off 15 per cent of their workforce. This amounts to 1,500 employees globally in 2023 as a part of the restructuring. They attributed the move to poor macroeconomic conditions.
As per a statement given to TechCrunch, OLX said, “Earlier this year, we made the strategic decision to exit the OLX Autos business and potential buyers or investors have been explored since then.”
It added, “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.”
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The Argentinian website of OLX Autos reads, “OLX Autos will cease its purchasing operations in Argentina/Colombia/Mexico. We want to express our most sincere gratitude for the trust and support you have given us throughout these years, and we deeply regret that we cannot continue to provide you with this service in the future. All existing purchase contracts will be honoured, but as of June 14, 2023, new transactions will no longer be made."
While OLX Autos will continue selling vehicles in these markets, the company will not accept any new transactions in Argentina. For other regions, the protocols are still unclear. Notably, OLX Autos website of India is still running fine.
As per Prosus' annual report for the year ending on March 31, 2022, their classifieds business, primarily OLX, employed 11,375 individuals worldwide.
The company stated, “We are committed to supporting all impacted people throughout this transition.”
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