Dutch-domiciled online marketplace and global trader in facilitating trade, Olx group, has laid off 800 employees globally, following the closure of its automotive business unit, Olx Auto in several regions.
The online marketplace which currently operates in over 30 countries, revealed that the move was necessitated as it seeks to optimize its operations and focus on local market sales.
After careful evaluation of the closure of its Automotive unit, the company disclosed that pursuing individual country sales would be the ideal approach, considering the substantial value present in local markets.
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This will involve discontinuing operations in certain regions, which include Chile, the financing business in Latin America, and both the Olx classifieds platforms and the Auto transaction business in India, Indonesia, and Turkey.
Speaking on the recent layoff carried out at the company, a spokesperson at 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. 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.”
The company revealed it will stay committed to supporting all impacted employees throughout this transition period.
The OLX Autos is part of the OLX Group which operates one of the fastest-growing networks of trading platforms globally. It serves 322 million people every month in 30+ countries around the world, helping them buy and sell cars, find housing, get jobs, buy and sell household goods, and much more.
In November, Olx Autos saw 84% growth in revenue, reaching a significant milestone of $1 billion during the first half of its 2022 financial year. However, the automotive business has not yet achieved profitability.
Notably, this is the second time Olx Group is reducing its workforce this year. In January 2023, the company reduced its global workforce by 15%, which impacted nearly 1,500 employees.
OLX is taking necessary measures to reduce its cost structure in light of changing macroeconomic conditions. 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 o line marketplace industry.
Founded in 2006, the Olx group has become a global leader in facilitating trade. The company has built a leading marketplace ecosystem enabled by tech, powered by trust, and loved by its customers.
By focusing on win-win outcomes for buyers, sellers, and the communities in which it operates, the OLX Group has become a leading online trading platform with 17 brands, and 300 million monthly users.
The company’s purpose is to shape the future of trade to unlock the hidden value in everything.