Spinny fires over 300 employees as part of reorganization
Spinny, a used car retailing start-up, has laid off over 300 employees, about 5% of its workforce, in a cost-cutting move. CEO Niraj Singh announced the layoffs during a town hall meeting. The layoffs have hit its budget and luxury platforms, Truebil and Spinny Max, the hardest. The company is merging the two divisions with the main Spinny brand.
Demand for used cars has slowed down after pandemic
The layoffs come at a time when demand for used cars has slowed after a pandemic-driven surge. Spinny noticed an increased demand for budget-friendly cars as people returned to work. The company said splitting inventory across platforms made it difficult to "offer enough options to such customers." It believes the consolidation of Truebil and Spinny Max would solve that issue.
Spinny acquired Truebil in 2021
The layoffs are aimed at reducing any redundancy in roles after the merger. The remaining employees of Truebil and Spinny Max will be part of the parent organization. Founded in 2015, Spinny runs over 55 car hubs in over 22 cities. The company acquired Truebil, its erstwhile competitor, in 2021. It is valued at around $1.6 billion and has raised over $530 million.
