Getaround, a peer-to-peer car-sharing company, is laying off 10% of its employees beginning Thursday. The layoffs are part of a restructure designed to put Getaround on the path to “sustainable profitability and long-term growth,” according to a statement from the company.
According to LinkedIn, Getaround has 421 employees, so the layoffs should affect approximately 42 people. Getaround would not confirm the exact number, but a company spokesperson told TechCrunch that the layoffs are limited to North American teams across all departments.
The announcement comes just one day after Getaround received a delisting warning from the New York Stock Exchange due to its stock price trading too low.
Following the announcement, Getaround shares jumped 17% after hours from $0.64 to a market close to $0.75, but have since settled to around $0.65, representing a 2.19% increase today.
Getaround, which went public in December after a merger with InterPrivate II Acquisition Corp., a special purpose acquisition company (SPAC), said it would also significantly reduce other operating expenses such as contract labor and outside professional services.
Sam Zaid, Getaround’s CEO, said the restructuring plan is a response to “an uncertain near-term macroeconomic outlook, which has hit technology companies particularly hard.”
It’s unclear how the company’s decision to go public via a SPAC merger affected its balance sheets. The transaction was completed in the fourth quarter of 2022, and Getaround has yet to announce its earnings. According to regulatory filings, Getaround burned $63.2 million in cash in the first nine months of 2022. The company reported $45 million in revenue for the same period, down from $48 million the previous year. Getaround had $27.2 million in cash at the end of the third quarter.
