800 people will be laid off globally, according to OLX Group, the parent firm of the online marketplace and the ads division of Prosus (global investment group). This occurs after the company closed down OLX Autos, a division of its car business, in a few regions.
OLX said earlier this year that 15% of its workers would be dismissed. In 2023, this will equate to 1,500 employees globally as a result of the restructure. They explained the change by pointing to weak macroeconomic conditions.
As per a statement given to TechCrunch, 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.”
It added, “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 Argentinian website of OLX Autos reads, “OLX Autos will cease its purchasing operations in Argentina/Colombia/Mexico. We want to express our most sincere gratitude for the trust and support you have given us throughout these years, and we deeply regret that we cannot continue to provide you with this service in the future. All existing purchase contracts will be honoured, but as of June 14, 2023, new transactions will no longer be made."
OLX Autos will keep selling cars in these markets, but it won't be accepting any new deals in Argentina. The methodology for other regions is still unclear. Notably, the Indian OLX Autos website is still functional.
According to Prosus' annual report for the fiscal year that ends on March 31, 2022, its classifieds business—primarily OLX—employed 11,375 people globally.
