Car-sharing firm Getaround cuts 30% of jobs as part of restructuring

SAN FRANCISCO: US-based car-sharing company Getaround, which helps vehicle owners rent out their cars, trucks and SUVs to other peers, has announced to lay off 30 per cent of its workforce as part of a restructuring.

In a message to employees, Getaround founder and CEO Sam Zaid said that the decision to lay off workers is part of the company's plan to better meet the global nature of the carsharing business.

“Our focus on profitability and sustainable business growth necessitated this difficult workforce reduction program,” Zaid said in a statement.

"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," he added.

The latest job cuts will affect the company’s North American staff, effective immediately.

The company anticipates that this cost-reduction program will result in savings of approximately $7 million on an annualised run-rate basis. It also expects to incur up to $1 million in restructuring costs in connection with the workforce reductions.

"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," Zaid said.

The affected will receive up to 12 weeks of severance, full benefits through the end of February 2024 along with pay for three months.

In February last year, Getaround laid off about 10 per cent of its workforce with immediate effect as part of a restructuring, with an aim to put the company on the path to "sustainable profitability and long-term growth".