Getaround, a company that helps vehicle owners rent out their cars, trucks and SUVs to other partners, is cutting 30% of its North American workforce as part of a restructuring.
The company said in a statement that it will expand its cash runway and restructure its workforce and operations to cut costs in hopes of accelerating “its path to profitability.”
Getaround does not disclose the number of workers currently employed in North America or Europe. According to the company's most recent full-year earnings report, it employed 283 full-time employees as of December 31, 2022. That number fluctuated due to a 10% workforce reduction in February 2023, which was carried out to “achieve a leaner path to profitability”, and the acquisition of Hirecar in May 2023.
Getaround said this latest restructuring will save about $7 million on an annualized run-rate basis. The company said up to $1 million in restructuring costs related to 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 consistent 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 marketplace, implemented a powerful new global app that unifies and enables seamless trip coordination across the US and Europe, and expanded into gig carsharing, enabling gig workers across the US and Europe. The US rents 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 well-positioned for the future.
Getaround has seen revenue growth, which revealed a 42% year-over-year increase in its third-quarter earnings report. Despite progress, profitability is still a ways off. In the same quarter, Getaround reported operating expenses of $42.9 million and a loss of $27.3 million on a net GAAP basis. Even using more generous profit calculations, Getaround was unprofitable in the third quarter, with adjusted EBITDA of -$11.3 million in the three-month period.