Getaround Announces Restructuring Plan to Reduce Costs and Streamline Operations
February 02 2023 - 5:30PM
Business Wire
Proactive actions will optimize Getaround’s
cost structure in response to near-term macroeconomic uncertainty,
while maintaining focus on innovation and sustainable, profitable
growth
Estimates cost savings of $25 million - $30
million on annualized run-rate basis
Getaround (NYSE: GETR) (“Getaround'' or “the Company”), the
world's first connected carsharing marketplace, today announced the
Company will streamline operations and reduce costs to achieve a
leaner path to profitability. These changes also include a
workforce reduction, effective immediately, that impacts
approximately 10% of the Company’s current staff. The restructuring
plan also includes significant reductions to other operating
expenses, including reducing the Company’s contract workforce, and
outside professional services. This revised global business
strategy is intended to fortify the Company’s path to achieve
sustainable profitability and long-term growth. Together, these
reductions to the Company's operating expenses are estimated to
result in cost savings of between $25 and $30 million on an
annualized run-rate basis.
“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,” said Sam Zaid,
Getaround CEO. “These proactive changes include a difficult, but
necessary, reduction in our North American workforce. Through these
changes, we will maintain and prioritize 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, optimize the Company’s underlying cost structure. Getaround
continues to benefit from strong demand in the U.S. and Europe, as
we continue to lead the digital carsharing transformation.”
Zaid continued, “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.”
About Getaround Offering a 100% digital experience,
Getaround makes sharing cars and trucks simple through its
proprietary cloud and in-car Connect® technology. The company's
mission is to empower people to carshare everywhere and shift away
from car ownership through instant and convenient access to
desirable, affordable, and safe cars from entrepreneurial hosts.
Getaround’s on-demand technology enables a contactless experience —
no waiting in line at a car rental facility, manually completing
paperwork, or meeting anyone to collect or drop off car keys.
Getaround aims to utilize its peer-to-peer marketplace to help
solve some of the most pressing challenges facing the world today,
including environmental sustainability and access to economic
opportunity. Launched in 2011, Getaround is available today in more
than 1,000 cities across the United States and Europe. For more
information, please visit https://www.getaround.com/.
Forward Looking Statements Certain statements in
this press release may constitute “forward-looking statements”
within the meaning of the federal securities laws. Forward-looking
statements generally relate to future events, such as statements
related to the expected benefits of and timing of completion of the
restructuring plan, and the expected costs and charges associated
therewith. In some cases, you can identify forward-looking
statements by terminology such as “intends,” “plans,” and “will,”
or the negative of these terms or variations of them or similar
terminology. Such forward-looking statements are subject to risks,
uncertainties, and other factors which could cause actual results
to differ materially from those expressed or implied by such
forward-looking statements. We have based these forward-looking
statements on our current expectations and assumptions and analyses
made by us in light of our experience and our perception of
historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate
under the circumstances. However, whether actual results and
developments will conform with our expectations and predictions is
subject to a number of risks and uncertainties, many of which are
beyond our control, including the risk that the restructuring costs
and charges may be greater than anticipated; the risk that the
Company’s restructuring efforts may adversely affect its ability to
recruit and retain skilled and motivated personnel, and may be
distracting to employees and management; the risk that the
restructuring efforts may negatively impact the Company’s business
operations and reputation with or ability to serve hosts and
guests; the risk that the restructuring efforts may not generate
their intended benefits to the extent or as quickly as anticipated;
and the other factors under the heading “Risk Factors” in our
Current Report on Form 8-K filed with the SEC on December 14, 2022,
and in other filings that the Company has made and may make with
the SEC in the future. All of the forward-looking statements made
in this press release are qualified by these cautionary statements.
The actual results or developments anticipated may not be realized
or, even if substantially realized, they may not have the expected
consequences to or effects on the Company or our business or
operations. Such statements are not intended to be a guarantee of
future performance and actual results or developments may differ
materially from those projected in the forward-looking statements.
You should not place undue reliance on these forward-looking
statements, which are made only as of the date of this press
release. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20230202005890/en/
Shyna Deepak press@getaround.com
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