Used-cars platform Cars24 is set to lay off 120 employees as part of a fresh restructuring exercise aimed at streamlining its operations. The layoffs follow a previous round in April when the Delhi NCR–based company let go around 200 employees. This time, the cuts are said to be more focused on non-core business units.
However, in a statement sent to Inc42, a Cars24Cars24 spokesperson clarified and said, “No layoffs are taking place at present. Our priority remains long-term growth and building with intent.”
One of the major changes involves the complete shutdown of Inspare, the company’s B2B vehicle-spare-parts venture. Inspare had been in a pilot phase but failed to gain sufficient market traction. The closure will result in 80 job losses across departments including catalogue, procurement, sales, and operations. Impacted employees have been advised to begin seeking new job opportunities.
In addition to Inspare, Cars24 is also reducing its workforce at FourDoor, its car-servicing and maintenance vertical. About 40 employees from that team have been laid off. The company has attributed the move to project underperformance and strategic recalibrations.
The company is reportedly offering severance packages aligned with notice periods. No more layoffs are planned at this time. Leadership at Cars24 has emphasised that this is a targeted reset, not part of a larger downsizing trend.
These changes come as Cars24 looks to strengthen its core business and explore new verticals. The company recently acquired Team-BHP, a prominent online automotive community, marking a step into content and community engagement. It has also launched a new car platform offering AI-powered tours and home test drives.
The restructuring reflects the increasing competition in the used-car market, where rivals are scaling up on the strength of fresh funding and aggressive growth plans.
