Getaround Inc. will Carpooling has laid off nearly a third of its workforce in an effort to further cut costs.
In a blog post on Wednesday, the San Francisco-based company said it needed to focus on profitability, and “keep the long-term success of the business in mind.”
The job cuts, which will affect about 30% of its North American employees, “are expected to reduce costs and accelerate our path to profitability,” resulting in savings of approximately $7 million on an annual run-rate basis, the company said.
CEO Sam Zaid said the decision was difficult, adding, “I take full responsibility for this decision, and I apologize for the heartache and disruption it will cause.”
It announced a restructuring plan a year ago that included layoffs of about 10% of its workforce, and last May it bought HyreCar, which offers car rentals to gig economy drivers, for $9.45 million. In December, Getaround prematurely terminated the lease on its San Francisco headquarters, according to the San Francisco Chronicle.
Getaround shares rose 170% on Jan. 24 after entering into a $20 million debt facility plan with Mudrick Capital Management.
However, the company's stock is down nearly 63% over the past 12 months.