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