Shift Technologies Layoffs: Online Used-Car Marketplace Sacks 30% of Workforce as Part of Cost Cutting
During the earnings call, CEO Jeff Clementz announced the job cuts. The layoffs occur as the company saw its revenue decline in the fourth quarter and its operating loss increased, reports TechCrunch.
San Francisco, March 30: US-based online marketplace for buying and selling used cars Shift Technologies has reduced its workforce by 30 per cent in the first quarter in an effort to cut costs and eliminate duplication following its merger with CarLotz, the media reported.
During the earnings call, CEO Jeff Clementz announced the job cuts. The layoffs occur as the company saw its revenue decline in the fourth quarter and its operating loss increased, reports TechCrunch. Unacademy Layoffs: Edtech Major Sacks 12% of Workforce Affecting Over 350 Employees in Its Latest Job Cuts Round.
"While difficult, we reduced headcount by approximately 30 per cent in the first quarter. In addition to corporate roles, the majority of reductions were due to our move to decentralised sales organisation, which occurred in February," Clementz was quoted as saying. He added that the aceCarLotz integration and strategic moves to rightsize our SG&A are largely behind us".
Shift Technologies, which went public in 2020 through a merger with a special purpose acquisition company, recorded $65.6 million in revenue in the fourth quarter, a 67 per cent decrease from the same period the previous year. The company recorded a fourth-quarter operating loss of $60.7 million, a 14 per cent increase over the same period in 2021, according to the report. Jumia Layoffs: African Marketplace Firm Sacks 20% of Its Staff as Part of Cost Cutting.
Meanwhile, electric vehicle (EV) startup Lucid has announced that it is laying off around 1,300 of its employees or 18 per cent of its workforce, within the upcoming months.
According to an email from CEO Peter Rawlinson, which was attached to a regulatory filing, the job cuts will impact employees and contractors "in nearly every organisation and level, including executives".
(The above story first appeared on LatestLY on Mar 30, 2023 02:34 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).