Online marketplace OLX, the online marketplace and classifieds business arm of Prosus, cut around 800 jobs globally on Tuesday.
Presence
Prosus said it employed 11,375 people worldwide in its classifieds business, predominantly Olx.
Olx Group operates in over 30 countries globally and is headquartered in Amsterdam
The layoffs come after it failed to find potential buyers and investors.
Notably, the OLX Auto India website is still operational.
Slashing 15 percent of workforce
In January, OLX Group confirmed plans to slash 15 per cent of its workforce, or more than 1,500 employees, globally including in India as part of restructuring.
They attributed the move to poor macroeconomic conditions.
In November, Prosus reported revenue growth of 84 percent for Olx Autos, surpassing $1 billion during the first half of the 2022 financial year
However it has yet to achieve profitability.
Reason
“OLX is taking necessary measures to reduce its cost structure in light of changing macroeconomic conditions.
Regrettably, this means we are reducing the size of our workforce across the company.
We are sorry to part ways with these valuable contributors, but doing so is necessary to meet our future ambitions.
Ensuring that our employees are treated fairly and with dignity and respect is at the forefront of our attention at this time,” an OLX spokesperson had said.
Engineering and operations teams are among the worst hit in the country.
Closing Olx Autos
The company has started shutting operations of its automotive unit, Olx Autos, in certain markets.
It has closed operations in Argentina, Mexico, and Colombia.
OLX Autos will continue selling vehicles in these markets but will not accept any new transactions in Argentina.
Official statement
“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 was quoted as saying.
“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,” it added.
Argentina operations
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.”
Affected employees
The Netherlands-based company started informing affected employees about the layoffs which are not limited to a particular market or division.
However, there is no confirmation on whether any C-level officers were affected or the current headcount.
“We are committed to supporting all impacted people throughout this transition,” the company said.
