Getaround, a company that helps vehicle owners rent out their cars, trucks and SUVs to peers, is cutting 30% of its North American workforce as part of a restructuring.
The company he said in a statement will restructure its workforce and operations to cut costs in hopes of expanding its cash runway and accelerating its “road to profitability.”
Getaround will not disclose the number of employees it currently employs in North America or Europe, where it also operates. The company had 283 full-time employees as of Dec. 31, 2022, according to its most recent full-year earnings report. This figure has fluctuated since then due to a 10% workforce reduction in February 2023, which was also undertaken to “achieve a leaner path to profitability”, and the acquisition of Hyrecar in May 2023.
Getaround said this latest restructuring will result in savings of approximately $7 million annually. The company said it expects up to $1 million in restructuring costs related to the workforce reductions.
“Our focus on profitability and sustainable business growth necessitated this difficult workforce reduction program,” Getaround CEO Sam Zaid said in a statement. “We have made significant progress over the past year, including steady improvements in revenue growth and unit financials, as well as overall adjusted EBITDA profile and operating efficiency. We launched a new artificial intelligence model (Trustscore AI) to improve the safety and economics of our marketplace, developed a powerful new global app that unifies and enables seamless travel coordination in the US and Europe, and expanded into gig carsharing, allowing workers in US gigs renting cars to drive for services like Uber and DoorDash. As the only truly global and digital carsharing marketplace, and a leader in gig carsharing, we believe Getaround is increasingly well positioned for the future.”
Getaround saw revenue growth, according to its third-quarter earnings report, which revealed a 42% year-over-year increase. Although progress has been made, profitability is still a long way off. In the same quarter, Getaround reported $42.9 million in operating expenses and a $27.3 million net GAAP loss. Even using more generous earnings calculations, Getaround was still unprofitable in the third quarter, with adjusted EBITDA of -$11.3 million during the three-month period.
