Online used vehicle retailer Shift Technologies cut its workforce by 30% in the first quarter as the company sought to reduce costs and eliminate duplicate positions following its merger with CarLotz, CEO Jeff Clementz said during an earnings call.
The layoffs came as the company saw its revenue plummet in the fourth quarter and its operating losses expand.
Shift closed its merger with CarLotz in December and immediately eliminated duplicate costs and roles, Clementz said during Tuesday’s earnings call. In early February, the company decided to exit CarLotz’s presence on the East Coast and shut down the Downer Grove, Illinois location in order to focus on core West Coast markets. One remaining CarLotz location in Pomona, California remains open. Shift also has three locations in Los Angeles, San Francisco Bay Area and Portland.
“While difficult, we reduced headcount by approximately 30% in the first quarter,” Clementz said on the call. “In addition to corporate roles, the majority of reductions were due to our move to decentralized sales organization, which occurred in February.” He added that the “CarLotz integration and strategic moves to rightsize our SG&A are largely behind us.”
