Shift Technologies Announces Workforce Reductions

Shift Technologies, the leading online automobile purchasing services provider, has announced a significant reduction in its workforce. Under the leadership of newly appointed Chief Executive Ayman Moussa, the company aims to streamline operations and enhance overall efficiency.

It is projected that the headcount will be reduced by approximately 34%. These reductions will primarily affect operational roles, accounting for around 60% of the overall workforce reduction. The remaining positions to be eliminated will predominantly be in the technology department, as Shift Technologies shifts its focus away from investment into the dealer marketplace. The company aims to concentrate on core operations and general corporate functions.

At the end of 2022, Shift Technologies had a total of 970 full-time employees, a number that has since decreased to around 360 as of March 30. This downsizing is aimed at optimizing the company’s structure and better utilizing its resources.

The reductions are expected to result in one-time charges of approximately $900,000. However, this move will also generate significant cost savings in selling, general, and administrative expenses, estimated to be around $14 million annually. By implementing this new organizational structure, Shift Technologies aims to enhance the customer experience and improve operational efficiency while maximizing their cash resources.

CEO Ayman Moussa commented, “We are committed to driving performance and ensuring the long-term success of our company. These workforce reductions are part of our strategy to achieve these goals.”