 "Cars and SUVs are beginning to form a larger proportion of the consumption basket")
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.
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"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.A
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.
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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".
--IANS
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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
