Vroom (VRM) to cut 11% of workforce

April 26, 2023 5:25 PM EDT

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Vroom (NASDAQ: VRM) said it will cut 120 employees or approximately 11% of its workforce:

From the company:

As part of Vroom, Inc.’s ongoing reexamination of all facets of our business, we have implemented an organizational restructuring that includes a reduction in force across the Vroom organization as of April 26, 2023. We reduced Vroom’s headcount by approximately 120 employees, or approximately 11% of Vroom employees, excluding United Auto Credit Corporation (“UACC”), or approximately 7% measured across the combined Company.

Combined with prior reductions, this reflects an approximately 55% reduction of Vroom employees and contractors (excluding UACC) since January 2022.

The Company expects to incur total cash charges of approximately $2 million, primarily consisting of severance, and expects to achieve approximately $15 million of annualized cash savings as a result of the reduction in force. When combined with the Company's previously announced January 2023 reduction in force, the annualized cash savings are approximately $42 million.

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