Getaround, a company that helps vehicle owners rent their cars, trucks and SUVs to peers, is cutting 30% of its North American workforce as part of a restructuring.
The company said in a statement will restructure its workforce and operations to reduce costs in hopes of expanding its cash runway and accelerating “its path to profitability.”
Getaround did not disclose the number of workers it currently employs in North America or Europe, where it also operates. The company employed 283 full-time employees as of December 31, 2022, according to its most recent full annual earnings report. That figure has fluctuated since then due to a 10% workforce reduction in February 2023, which was also carried out to “achieve a more agile path to profitability” and a May 2023 acquisition of Hyrecar.
Getaround said this latest restructuring will result in savings of around $7 million on an annualized run-rate basis. 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 economics, 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 market, implemented a powerful new global application that unifies and enables seamless travel coordination in the US and Europe, and expanded it to car sharing, enabling workers around the world. The United States rents cars to drive services like Uber and DoorDash. As the only truly global and digital carsharing marketplace, and as a leader in carsharing, we believe Getaround is increasingly better positioned for the future.”
Getaround has seen revenue growth, according to its third-quarter earnings report that revealed a 42% year-over-year increase. Although progress has been made, profitability is still far away. In that same quarter, Getaround reported operating expenses of $42.9 million and a net GAAP loss of $27.3 million. Even using more generous earnings estimates, Getaround remained unprofitable in the third quarter, with adjusted EBITDA of -$11.3 million over the three-month period.
