InvestorQ : Is it true that the big digital players are laying off their staff aggressively?
shrinidhi Rajan made post

Is it true that the big digital players are laying off their staff aggressively?

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9 months ago
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Yes, in fact several unicorns or start-ups with valuations of over $1 billion have been seriously laying off their staff under the guise of performance related changes. The truth is the silent panic is the digital space is spreading rapidly. The most recent case is that of Pre-owned cars platform, CARS24, which recently laid off around 600 employees. While it is being called a performance review, the truth is not hidden from the markets.

CARS24 has a 9,000 strong workforce but obviously its revenue growth and profit visibility are not in sync with its growing costs.. Based on the last round of funding in December 2021, CARS24 was valued at $3.3 billion, the current valuation may be much lower as was seen in listed players. The reason is recession fears. Actually, digital companies are playing it smart by cutting cash burn on a monthly basis. Manpower is usually the starting point.

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