Shift Technologies to reduce workforce by 34%, continue strategic review

Shift Technologies announced a plan to restructure and reduce the company’s workforce. 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. The Company has also decided to eliminate investment into the company’s dealer marketplace business in order to focus on core operations. 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. 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. The strategic alternatives review process established to maximize value for all stakeholders is ongoing.