Southeast Asian used car marketplace Carsome is eliminating hundreds of positions across regional operations to reduce costs and reach break-even profitability by 2023 before a possible 2024 IPO after scaling back considerably in Indonesia and Thailand amid dampened used car demand tied to supply chain kinks, inflation and weaker consumer spending.
Summary
Carsome Group, Southeast Asia’s leading used car marketplace, eliminates hundreds of positions across regional operations as the company restructures to reach profitability ahead of a still-possible public listing.
Sources say that Indonesia and Thailand have seen the deepest job cuts after Carsome scaled back considerably in both markets in 2017. The reductions are part of a broader cost-control push.
Streamlining Business For Financial Viability
With an IPO likely delayed till 2024 amid unfavorable conditions, CEO Eric Cheng said Carsome must focus on breaking even this year and notch full-year profits in 2024.
While emphasizing readiness to list when markets stabilize, trimming expenses helps balance out revenue dents tied to dampened used car demand regionally.
Pandemic-Fueled Struggles
Carsome and rivals like Carro contend with pandemic impacts, including supply chain kinks, inflation, and weaker consumer spending.
Fundraising potential may subsequently rely on showing investors a path to autonomous operations. That requires making tough workforce right-sizing decisions before capturing public market interest.
With a promising long-term outlook but near-term uncertainty in used car e-commerce, Carsome appears positioned to weather current storms.
But the road ahead likely necessitates prudent financial housekeeping.
