In an odd twist of brand story-telling, Carsome decided it had been appropriate to go for more job cuts nearly two months after it secured US$200 million (~RM838 million) in financing on September 1 2023.
This is on top of ongoing talks with the press and investors that Carsome is on track to achieve its first full-year of profitablity in 2024.
According to various news sources, the cuts, comprising hundreds of positions across Carsome’s Southeast Asia operations, have hit Indonesia and Thailand the hardest. Based on one anonymous posting, back-end teams within Carsome are seeing many members being let go as well. This includes quality assurance and software engineering.
This is not the first retrenchment exercise for Carsome as it did let go a significant number of employees in September 2022 as part of its efforts to “optimise the workforce”. Industry analysts believe this new round of job cuts is part of a concerted move to reach profitability before making any potential moves for a public listing.
For Carsome, the plan to go public had always been on the minds of its leadership team. Going with a dual listing in Singapore and the US had been the initial plan for Carsome, but it delayed the move due to concerns that current macro-economic conditions could negatively impact the overall valuation.
“We make adjustments to the workforce where necessary. However, we remain committed to investing in all of our current markets and plan to accelerate profitable growth in 2024,” it shared in a reply to press queries.
Industry experts and those with deeper insights into the used car sales markets are predicting a 2024 listing for Carsome.