- Getaround Inc. announces significant job cuts to reduce costs
- About 30% of North American staff to be affected
- CEO Sam Zaid takes responsibility for the decision
- Expected savings of approximately $7 million annually
Car-sharing company Getaround Inc. is set to lay off approximately one-third of its workforce as part of a cost-cutting strategy to improve profitability. The San Francisco-based company made the announcement in a blog post on Wednesday, emphasizing the need to prioritize the long-term success of the business.
Efforts to Achieve Profitability
Getaround Inc. aims to accelerate its path to profitability through these job cuts. By reducing costs, the company expects to achieve approximately $7 million in savings on an annualized run-rate basis. This move comes as part of a larger effort by Getaround to streamline its operations and improve financial performance.
CEO Takes Responsibility
Chief Executive Sam Zaid expressed the difficulty of the decision and took full responsibility for the job cuts. He acknowledged the heartache and disruption it will cause to affected employees. Zaid’s apology reflects the company’s commitment to making tough choices in order to secure the future of the business.
Past Restructuring and Acquisitions
Last year, Getaround Inc. announced a restructuring plan that included layoffs affecting approximately 10% of its workforce. In May, the company acquired HyreCar, a platform providing car rentals for gig-economy drivers, for $9.45 million. These strategic moves indicate Getaround’s ongoing efforts to optimize its operations and navigate the evolving mobility landscape.
Despite entering into a $20 million debt facility plan with Mudrick Capital Management, Getaround’s stock has experienced a significant decline of approximately 63% over the past 12 months. The company’s focus on reducing costs and improving profitability aligns with its commitment to regain investor confidence and drive future growth.
Getaround Inc.’s decision to lay off 30% of its workforce underscores the company’s determination to prioritize profitability and secure its long-term success. While this move may cause disruption and heartache for affected employees, it is a necessary step to reduce costs and accelerate the path to profitability. Getaround’s commitment to making difficult decisions demonstrates its dedication to navigating the challenges of the car-sharing industry and positioning itself for future growth.