Getaround, a peer-to-peer car-sharing company, will lay off 10% of its workforce starting Thursday. The job cuts are part of a restructuring aimed at putting Getaround on a path to “sustained profitability and long-term growth,” the company said in a statement.
According to LinkedIn, Getaround has 421 employees, so the job cuts should affect about 42 employees. Getaround has not confirmed exact numbers, but a company spokesperson told TechCrunch that the layoffs will only affect North American teams across all divisions.
The news comes a day after Getaround received a delisting warning from the New York Stock Exchange because the stock price was too low. After the company’s announcement, Getaround’s stock jumped 17% from $0.64 in the after-hours market near $0.75, but has since settled at about $0.65 and is still up 2.19% today. I’m here.
Getaround, which entered the public market in December through a merger with special purpose acquisition company (SPAC) InterPrivate II Acquisition Corp., said it would also slash other operating costs, such as its contract workforce and outsourced professional services. rice field.
Like nearly all other executives who have ordered layoffs in the past year, Getaround CEO Sam Zaid said the restructuring plan was driven by an “uncertain near-term macroeconomic outlook that has hit technology companies particularly hard.” said that it was a response to
Getaround estimates that the restructuring will result in cost savings of $25 million to $30 million on an annual run-rate basis.
It is not yet clear what impact the company’s decision to go public through the SPAC merger will have on its balance sheet. The deal will close in the fourth quarter of his 2022, and Getaround has not yet set an earnings release date. In his first nine months of 2022, Getaround’s cash his burn was $63.2 million, according to regulatory filings. The company reported revenue of $45 million for him during the same period, down from $48 million for him the year before. By the end of the third quarter, Getaround had $27.2 million in cash.
The merger would have provided the company with an additional $228 million in gross revenues, allowing it to continue operating and achieve its next phase of growth. Despite the short-term infusion of funds, Getaround supported the decision to reduce its workforce, stating, “We have taken several years to consider the responsible fiscal measures necessary to maximize earnings in the face of an uncertain economic environment.” I have a broad perspective,” he said.
This article has been updated with more information from Getaround.
