Digital car-sharing marketplace Getaround has announced a restructure to prioritize profitability and globalization.
The reorganization includes a workforce reduction impacting about 30% of the company’s North American team. The company did not make clear its total workforce, nor the number of employees who were cut.
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Sam Zaid, CEO of Getaround, called the “difficult workforce reduction program” a necessity. As a result of the reductions, implemented savings include $7 million on an annual basis. The restructure will likely cost the company around $1 million.
Zaid reflected on the peer-to-peer marketplace’s progress in light of the restructure.
“We’ve made significant progress over the past year, including steady improvements in revenue growth and unit economics, as well as in overall adjusted EBITDA profile and operating efficiency,” said Zaid, pointing to the company’s new artificial intelligence model dubbed Trustscore AI, its new global app to improve trip coordination in Europe and the United States and its expansion to gig car-sharing.
Zaid believes the company is well positioned for the future.
“I want to thank all those teammates who contributed to the substantial progress Getaround has experienced,” he said. “While we believe this restructuring plan is the right decision for the business, it does not diminish the challenge of letting talented colleagues go or the gratitude we have for the dedication and professionalism of the team.”
The restructure comes months after the New York Stock Exchange’s November determination to commence proceedings for a delisting.
Getaround, which launched in 2011, went public in 2022, experiencing a stock crash not long after, according to CNBC.
In years prior, Getaround had a number of successful funding rounds including its $140 million Series E raise during the COVID-19 pandemic, which, at the time, brought the company to $600 million in total funds raised.