OLX Group, which operates as the classifieds business division under Prosus, has announced termination of 800 employees in its workforce. This action follows the closure of OLX Autos, their automotive business unit, in certain regions.
The decision is said to be the result of the company’s ongoing efforts to gradually discontinue the operations of its automotive business unit. This follows an extensive search for potential buyers and investors.
Unfortunately, due to the unavailability of prospective buyers, the company has announced that it will discontinue its purchasing operations in Argentina, Colombia, and Mexico. Additionally, the company declared that it will only honour its existing purchasing contracts and will not facilitate any new transaction starting June 14, 2023.
OLX Auto employees in Mexico have already started posting about their recent layoffs on LinkedIn. All the affected employees have expressed their sentiments about the closure of a chapter, stating that the adventure that began just over a year ago has now come to an end, leaving them with deep sadness.
However, OLX Autos will continue selling vehicles in these markets, except for Argentina where new transactions will not be accepted. The company’s plans for other regions remain uncertain while it is worth noting that the OLX Autos website in India is still operational.
In an earlier announcement, OLX had stated their intention to downsize their workforce by 15 per cent this year, resulting in the elimination of 1,500 jobs worldwide. This restructuring was attributed to unfavourable macroeconomic circumstances.
The company has stated its commitment to supporting all affected individuals throughout this transitional period. Furthermore, as per the statement by Tech Crunch, the company has considered pursuing separate sales in each country as the most advantageous approach, considering the substantial value present in local markets. It includes the company’s operations in Chile and Latin America, also covering its OLX classifieds platforms and the Autos transaction businesses in India, Indonesia, and Turkey.