OLX India lays off 250 employees as it shifts focus to a few verticals
OLX India lays off 250 employees as it shifts focus to a few verticals – Online consumer to consumer marketplace OLX India has abandoning off 250 of its employees because it looks to primarily specializing in two of its verticals as a part of a bigger strategy change within the organization, consistent with three people conversant in the event.
The people cited above also said that the Prosus-owned company may pull the plug from its land and used goods verticals.
“OLX may pack up the aforementioned verticals and focus only on its two transaction businesses — Cash my Car and Aasaanjobs,” said one among the people cited above on condition of anonymity. “OLX’s decision isn’t thanks to Covid but is a component of a bigger change in global strategy.”
OLX confirmed the layoff news to Entrackr. “As we still evolve to satisfy the market expectations and therefore the needs of our customers, we’re shifting our strategy and that specialize in key segments where we will offer more services and convenience,” said an OLX spokesperson. “By refocusing our strategy, we’ve decided to form a couple of internal alignments which will impact around 250 of our colleagues in sales and support teams.”
OLX, however, denies any such development of shutting down these verticals. “The land and used goods verticals will still function,” added the spokesperson.
OLX hadn’t been that specialize in real-estate and used goods verticals since the start of this year, say sources. “The company has primarily been ramping up its used cars vertical and therefore the blue-collared jobs one since late 2019,” said the second source, requesting anonymity.
The company had acquired a recruitment marketplace for blue and grey-collar jobs Aasaanjobs in January 2019.
Cash My Car, on the opposite hand, was launched in August 2018 as an omnichannel platform to sell cars. OLX had also launched a franchise model offline setup where the individual owners can sell their cars. the corporate has several dozen offline stores across 14 cities in India.
Globally, OLX has been trying to hedge itself from Facebook whose marketplace product has significantly dented its market share across multiple geographies including Indonesia and therefore the USA. apart from Europe and Russia where it owns Avito, OLX has struggled to require a position elsewhere.
Over the last two years, it’s exited multiple geographies by selling or merging the local business units with dominant players. OLX merged its Middle East business with Emerging Markets Property Group (EMPG) in April 2020 while its US business Letgo became a part of OfferUP round at the same time. The firm also sold its Southeast Asia business to Carousel.
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