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Getaround, a leading car-sharing platform, has announced a significant restructuring plan, involving a 30% reduction in its North American workforce. This move is part of a broader strategy aimed at enhancing operational efficiency, reducing costs, and ultimately achieving profitability. While the exact number of affected employees remains undisclosed, the company anticipates substantial annual savings as a result of the restructuring. CEO Sam Zaid highlighted the company’s commitment to sustainable growth and outlined recent advancements, including technological innovations and expansion into gig carsharing. Despite ongoing challenges, Getaround remains optimistic about its prospects and its position as a key player in the sharing economy.
Getaround, a prominent player in the car-sharing industry, has made the tough decision to downsize its workforce in North America by 30% as part of a comprehensive restructuring effort. This strategic move aims to streamline operations, cut costs, and ultimately pave the way for the company to achieve sustainable profitability.
While specific figures regarding current employee counts in North America and Europe, where Getaround also operates, have not been disclosed, the company’s recent full-year earnings report indicated a workforce of 283 full-time employees as of December 31, 2022. Since then, there have been fluctuations, including a 10% reduction in February 2023 and the subsequent acquisition of Hyrecar in May 2023. This latest round of restructuring is projected to yield approximately $7 million in annualized cost savings, albeit with associated restructuring costs estimated at up to $1 million.
Getaround’s CEO, Sam Zaid, emphasized that the decision to implement workforce reductions was driven by a strategic focus on achieving profitability and sustainable growth. Despite challenges, the company has made notable strides, including enhancements in revenue growth, unit economics, and operational efficiency. Significant investments have been made in technological advancements, such as the introduction of Trustscore AI to enhance marketplace safety and economics and the launch of a new global app facilitating seamless trip coordination across regions. Additionally, Getaround’s expansion into gig carsharing has empowered gig workers across the United States to access rental vehicles for services like Uber and DoorDash, positioning the company as a leader in this emerging market segment.
While revenue growth has been robust, profitability remains a key objective for Getaround. The company’s third-quarter earnings report demonstrated a substantial 42% year-over-year increase in revenue. However, operating expenses amounted to $42.9 million during the same period, resulting in a net GAAP loss of $27.3 million. Even when employing more lenient profit calculations, Getaround remained unprofitable in the third quarter, with an adjusted EBITDA of -$11.3 million.
Getaround’s decision to implement a workforce reduction strategy represents a strategic pivot aimed at fortifying its position in the competitive car-sharing market. By prioritizing profitability and operational efficiency, the company aims to weather challenges and emerge stronger in the long run. While the workforce reduction may bring short-term adjustments, it is expected to yield substantial cost savings and pave the way for sustainable growth. Getaround’s innovative approach, coupled with its recent advancements in technology and expansion into new market segments, positions it favorably for future success. As the company navigates the road ahead, it remains focused on delivering value to its stakeholders and driving continued innovation in the sharing economy.