Dutch-domiciled online marketplace Olx Group has reportedly announced to eliminate 800 roles across the globe in its second round of layoffs this year. The company has started intimating employees about the job cuts, according to a report by TechCrunch.
The Amsterdam-headquartered company has also started shutting down operations of Olx Autos, its automotive business unit, in some markets after a lengthy search for potential buyers and investors. The latest layoffs are a result of this decision to exit Olx Autos, the report, citing the company’s spokesperson noted. The job cuts are not confined to a market or a division, it added.
“Earlier this year, we made the strategic decision to exit the Olx Autos business and potential buyers or investors have been explored since then,” Olx Group 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.
The latest job cut came just months after the Prosus-owned company trimmed 15% of its workforce in January as a part of a restructuring. The move then affected about 1,500 employees globally including in India. According to Prosus’ annual report for the year ending March 31, 2022, it employed 11,375 employees in its classified business, predominantly Olx. However, the current headcount and other details about the fresh round of job cuts at Olx Group are still unclear.
Meanwhile, the move is in line with the ongoing job cuts happening worldwide, especially in the tech sector. Several tech companies including Mark Zuckerberg-led Meta, Sundar Pichai-led Alphabet, Elon Musk-led Twitter, and Satya Nadella-led Microsoft, among others, have laid off thousands of employees in an attempt to gear up for a global economic slowdown. In a nutshell, a setback in consumer spending due to high inflation and interest rates along with the threat of a looming recession this year has pushed corporates to keep a lid on their spending.