Cars24 lays off 600 employees

Used car marketplace

Cars24 has joined the list of start-ups that are laying off part of their workforce amidst a slowdown in funding.

SoftBank-backed Cars24 has laid off over 600 employees. As per reports, the layoffs have taken place across departments and roles and are more than 6 per cent of its total employee count of around 9,000.

On Wednesday, edtech firm Vedantu had laid off

424 employees after sending out 200 contractual and full-time staff earlier this month.

"There is no easy way to say this - out of 5900 Vedans, 424 of our fellow teammates i.e. 7 per cent of our company, will be parting with us," the company's CEO Vamsi Krishna had said in a blogpost. According to Vedantu, scarcity of capital and restart of offline classes has hit the business.

"Currently, the external environment is tough. War in Europe, impending recession fears, and Fed rate interest hikes have led to inflationary pressures with massive correction in stocks globally and in India as well. Given this environment, capital will be scarce for upcoming quarters," it said.

In April another ed-tech company Unacademy had laid off 600 employees or around 10 per cent of the company's total workforce. The retrenched employees include contractual workers and educators.

Meesho too had laid off 150 employees from its grocery business, which it recently restructured and rebranded as Meesho Superstore from Farmiso earlier.

The US Federal Reserve's tightening monetary policy along with other global headwinds have started reflecting in the private equity, venture capital space, with investments in April declining 27 per cent over the year ago month.