Vroom To Lay Off Nearly 90% Workforce, To Cut 800 Jobs
Vroom, a leading e-commerce platform for buying and selling used vehicles based in the United States, has announced that it will discontinue its e-commerce operations and wind down its used vehicle dealership business in order to preserve liquidity and maximise stakeholder value through its remaining businesses.
As part of the strategy, the company aims to lay off approximately 800 employees, or almost 90 per cent of its overall employment.
“The company anticipates that approximately 800 employees will be impacted upon substantial implementation of the Value Maximisation Plan, resulting in a reduction of approximately 90 per cent of the employees not engaged in UACC’s or CarStory’s operations,” Vroom said in the filing with the US Securities and Exchange Commission (SEC).
“As we previously disclosed, we intended to raise additional capital to fund our operations and support the extension of our vehicle floorplan facility beyond its current expiration date of March 31, 2024,” Thomas Shortt, the Company’s Chief Executive Officer, said in a statement.
“Despite significant efforts to do so, we ultimately were unable to raise the necessary capital in the current market,” he added.
