The layoffs are part of a restructuring aimed to put Getaround on the path to “sustainable profitability and long-term growth”, according to the company.
The restructuring plan will also include significant reductions to other operating expenses, including reducing the company’s contract workforce, and outside professional services.
“In response to an uncertain near-term macroeconomic outlook, which has hit technology companies particularly hard, Getaround has made the decision to streamline its operations,” Sam Zaid, Getaround CEO, said in a statement.
“These proactive changes include a difficult, but necessary, reduction in our North American workforce. Through these changes, we will maintain and prioritise Getaround’s spirit of innovation and long-term focus on profitably growing our global marketplace at a measured and efficient pace, while, at the same time, optimise the Company’s underlying cost structure,” he added.
Moreover, the car-sharing company said that this revised global business strategy is intended to fortify Getaround’s path to achieving sustainable profitability and long-term growth.
These reductions in the company’s operating expenses are expected to result in annualised cost savings of between $25 and $30 million.
“While this was a necessary step to maintain financial health and the long-term success of Getaround, with much sadness, I want to say thank you to our departing colleagues for your contributions, the energy you have brought to the team, and the impact you have had building Getaround into a global marketplace,” said Zaid.