Shift Technologies, a US-based online marketplace for buying and selling used automobiles, slashed its staff by 30% in the first quarter to cut costs and eliminate redundancy following its merger with CarLotz, according to media reports.
CEO Jeff Clementz disclosed the employment layoffs during the results call. According to TechCrunch, the layoffs come as the company’s sales fell in the fourth quarter and its operational loss grew.
“Although it was challenging, we decreased headcount by about 30% in the first quarter.” “In addition to corporate functions, the majority of reductions were due to our February transition to a decentralised sales organisation,” Clementz was reported as saying.
“The ace CarLotz integration and strategic steps to right-size our SG&A are mostly behind us,” he added.
Shift Technologies, which went public in 2020 after a merger with a special purpose acquisition company, reported $65.6 million in revenue in the fourth quarter, a 67% decline from the previous year.
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According to the report, the company had a fourth-quarter operating loss of $60.7 million, a 14% rise over the same period in 2021.
Likewise, electric vehicle (EV) company Lucid has revealed that it will lay off around 1,300 employees, or 18% of its staff, in the next months.
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The job losses will affect staff and contractors “in practically every organisation and level, including executives,” according to an email from CEO Peter Rawlinson attached to a regulatory filing.
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