Car-sharing company Getaround Inc. announces layoffs to reduce costs
Car-sharing company Getaround Inc. has made the difficult decision to lay off approximately one-third of its workforce in order to further reduce costs and focus on profitability. The San Francisco-based company aims to ensure the long-term success of the business.
Aiming for profitability and cost reduction
In a blog post on Wednesday, Getaround stated that these job cuts, affecting around 30% of its North American staff, are expected to have a positive impact on the company's path to profitability. It is estimated that these measures will result in approximately $7 million in savings on an annualized run-rate basis.
A difficult decision with accountability
Chief Executive Sam Zaid expressed the difficulties surrounding this decision, taking full responsibility and apologizing for the heartache and disruption it will cause. However, he emphasized the necessity of this move to secure the future success of Getaround.
Previous restructuring efforts
Getaround had previously announced a restructuring plan about a year ago, leading to layoffs affecting about 10% of its workforce. Furthermore, in May, the company acquired HyreCar, which provides car rentals for gig-economy drivers, for $9.45 million. In December, Getaround terminated the lease at its San Francisco headquarters prematurely.
Recent developments and stock performance
Getaround saw a significant boost in its shares, increasing by 170% on January 24th, after entering a debt facility plan worth $20 million with Mudrick Capital Management. However, despite this recent development, the company's stock price has declined by approximately 63% over the past 12 months.
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