Thirty percent of Getaround’s North American staff will be let go as part of a reorganisation. Getaround assists automobile owners in renting out their cars, trucks, and SUVs to other peers.
With an eye towards increasing “its path to profitability,” the company stated in a statement that it will reorganise its operations and people to cut expenses and increase its cash runway.
The number of employees that Getaround now employs in North America or Europe, where it also conducts business, was not disclosed. The most current full-year earnings report for the company indicates that as of December 31, 2022, it employed 283 full-time workers. A 10% workforce cut in February 2023, which was also carried out, is the reason that figure has changed since then to “achieve a leaner path to profitability,” and an acquisition of Hyrecar in May 2023.
According to Getaround, the most recent reorganisation will save roughly $7 million on an annualised run-rate basis. The business stated that it anticipates restructuring expenses related to the employee layoffs of up to $1 million.
Getaround’s third-quarter earnings report showed a 42% year-over-year increase in revenue, indicating that the company had experienced growth. Although there has been progress, profitability is still some distance off. Getaround recorded a $27.3 million net GAAP loss in the same quarter, along with $42.9 million in operating expenses.
With adjusted EBITDA of -$11.3 million over the course of the three months, Getaround was still losing money in the third quarter, even when employing more generous profit estimates.
