Cars24 lays off nearly 200 employees amid organisational restructuring

Used car marketplace Cars24 has laid off around 200 employees across its product and technology teams as part of a broader organisational restructuring exercise aimed at streamlining operations.

The development was first reported by Entrackr, which said the layoffs affected teams across multiple verticals.

“This is a tough decision. Over the past few weeks, we've had to part ways with around 200 employees across various functions. We are deeply grateful for their contributions. The layoffs are not about performance, but about structure and the bets we placed,” said Cars24 co-founder and CEO Vikram Chopra, confirming the move.

He added that the company is now looking to be “more strategic and deliberate” in its investments and team-building. “We’ve learned that speed without clarity is expensive, and some projects and roles were added prematurely,” Chopra said.

An internal note by Chopra, reviewed by YourStory, said, "We’ve always believed in moving fast. We’ve always pushed to build big. But the hard truth is: speed without enough clarity is expensive. And when the math doesn’t add up, it is on us to reset. Over the last few months, we realised that some projects did not deliver what we expected. Some roles were added too early. A few hypotheses simply didn’t hold when tested. And in some cases, we couldn’t offer the kind of growth or learning that people truly deserve."

"It is easy to blame the market or external factors. But the responsibility is ours. When the plan doesn’t work, you don’t blame the players; you take responsibility and change the plan. Yes, we made mistakes. I wish we hadn’t, but when you're building something hard, failures are part of the journey. The most challenging part is when those failures affect our teammates. That’s not easy to accept, he added.

The note stated that those impacted by the changes have been offered severance packages, assistance with resume building and LinkedIn updates, mentorship opportunities, emotional wellness resources, and access to open roles within the company’s broader network. Managers and the people team have already reached out individually to support the transition.

The development comes as competition in the used-car space intensifies. Earlier this month, Spinny, one of Cars24’s key rivals, raised $131 million in fresh funding from Accel’s Leadership Fund, which focuses on scaling select companies globally.

Cars24 has remained active on multiple strategic fronts over the past year. In April, it acquired Team-BHP, one of India’s most prominent auto enthusiast forums, with plans to improve the platform’s user experience and introduce new features. Team-BHP will continue to operate independently.

The company also launched Fourdoor, a multi-brand car servicing and maintenance business, as well as a ‘New Cars’ platform offering AI-enabled walkthroughs and home test drives. In addition, Cars24 has been expanding internationally, with a recent entry into Indonesia and a $100 million investment commitment for growth in Southeast Asia.

(The copy was updated with additional details from the company)