Online used-vehicle retailer Vroom to cut 11% of jobs

US-based online used-vehicle retailer Vroom has started cutting 11 percent of its workforce, or around 120 employees, across different departments and locations.
Technology job for women in IndiaThe job cut is part of an organizational restructuring that Vroom has implemented as part of a review of all aspects of the business, the company said in a US Securities and Exchange Commission (SEC) filing.

“The decision to reduce staff this week is consistent with our commitment to our long-term roadmap and objectives for the year to prioritize unit economics and growth, improve our customer experience, reduce cost per unit and maximize liquidity,” Vroom said.

Moreover, as a result of the reduction in force, the company expects to incur approximately $2 million in cash charges, primarily severance, and to achieve approximately $15 million of annualized cash savings, according to an SEC filing.

Employees affected will receive severance packages and job placement assistance, and the company will continue to hire for critical positions.

Last month, Shift Technologies, the US-based online marketplace for buying and selling used cars, has reduced its workforce by 30 percent in the first quarter in an effort to cut costs and eliminate duplication following its merger with CarLotz.

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