Shift Announces Restructuring to Streamline Operations and Reduce Cost Structure
12 7월 2023 - 5:05AM
Shift Technologies, Inc. (Nasdaq: SFT), a consumer-centric
omnichannel used auto retailer, today announced a plan to
restructure and reduce the Company’s workforce to better align
people and responsibilities with the Company’s omnichannel sales
strategy. The restructuring plan is the result of a review by the
Company’s recently appointed CEO Ayman Moussa as well as
evaluations conducted as part of the Company’s review of strategic
alternatives. The new structure is designed to improve the customer
experience, increase efficiencies throughout the sales process, and
better leverage our fixed costs. The Company has also decided to
eliminate investment into the Company’s dealer marketplace business
in order to focus on core operations.
“I joined Shift because I believe there is a meaningful
opportunity to increase unit sales and unit economics through
operational process improvements. We are announcing these changes
today as a result of observations during my first month as CEO,
leveraging best practices from over 20 years of auto industry
experience and leadership. These changes include eliminating
centralized operations roles, putting more ownership to team
members on the ground in our hubs, as well as eliminating
investment into the dealer marketplace. We are moving with a great
sense of urgency to improve performance and maximize our cash
runway,” said Mr. Moussa.
As a result of the restructuring, the Company expects to reduce
its headcount by approximately 34%. Approximately 60% of the
headcount reductions are in operational roles, primarily as a
result of eliminating centralized support. The remaining headcount
reductions are concentrated among technology roles as a result of
eliminating investment into the dealer marketplace, as well as
general corporate roles.
“I have been impressed by the dedication and engagement of the
entire Shift team to deliver on our mission to make car purchase
and ownership simple. The quality of the team makes this necessary
decision to reduce our workforce especially difficult,” Mr. Moussa
continued.
The Company expects the reduction in force to result in
annualized SG&A savings of approximately $14 million. The
Company expects to incur non-recurring charges of approximately
$900,000, consisting primarily of employee severance
costs.
Update on the Strategic Alternatives Review
Process
The strategic alternatives review process established to
maximize value for all stakeholders is ongoing.
About Shift
Shift Technologies, Inc. is a consumer-centric omnichannel
retailer transforming the used car industry by leveraging its
end-to-end ecommerce platform and retail locations to provide a
technology-driven, hassle-free customer experience. Shift’s mission
is to make car purchase and ownership simple — to make buying or
selling a used car fun, fair, and accessible to everyone. Shift
provides comprehensive, digital solutions throughout the car
ownership lifecycle, enabling customers to purchase a vehicle
online with financing and vehicle protection products, and a vision
to provide high-value support services during car ownership. For
more information please visit www.shift.com.
Forward Looking Statements; Use of
Projections
This communication includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
“forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,”
“expect,” “estimate,” “plan,” “outlook,” “project,” “should,”
“would,” “could,” “may,” “might,” “will”, and variations of such
words other similar expressions that predict or indicate future
events or trends or that are not statements of historical matters.
These forward-looking statements include, but are not limited to,
statements related to the Company’s expectations related to the
Restructuring Plan and the associated workforce reduction. Such
forward looking statements include estimated financial information.
Such forward-looking statements with respect to revenues, earnings,
performance, strategies, prospects and other aspects of Shift’s
business are based on current expectations that are subject to
risks and uncertainties. These forward-looking statements are not
guarantees of future results, and a number of risks, factors and
uncertainties could cause actual results or outcomes to differ
materially from those indicated by such forward-looking statements.
Important assumptions and other important factors that may cause
actual results to differ materially from those in the
forward-looking statements include, but are not limited to, a
material delay in consummating the Restructuring Plan, the risk
that the Restructuring Plan costs may be greater than anticipated
or that the savings may be less than anticipated, the risk that the
Restructuring Plan and associated workforce reduction may
negatively impact the Company’s business operations and reputation,
and the Company’s ability to recruit and retain its management and
key employees, and those additional risks, uncertainties and
factors described in more detail in the Company’s filings with the
Securities and Exchange Commission (“SEC”) from time to time,
including under the caption “Risk Factors” in the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2022
(including any amendments thereto), and in the Company’s other
filings with the SEC (including any amendments thereto). You are
cautioned not to place undue reliance upon any forward-looking
statements, which speak only as of the date made. Shift disclaims
any obligations or undertaking to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by law. Shift
gives no assurance that it will achieve its expectations.
Investor Relations:
Susan Lewis
IR@shift.com
Media Contact:
press@shift.com
Source: Shift Technologies, Inc.
Shift Technologies (NASDAQ:SFT)
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Shift Technologies (NASDAQ:SFT)
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