Vroom lays off 11% of workforce

San Francisco: US-based online used-vehicle retailer Vroom has laid off 11 per cent of its workforce, or around 120 employees, across different departments and locations.

The job cut is part of an 'organisational restructuring' that Vroom has implemented as part of a review of 'all aspects of the business', the company said in a US Securities and Exchange Commission (SEC) filing. According to Automotive News, the company has tied the employee reductions to its pursuit of executing a long-term, cost-cutting-focused business plan it shifted to last year.

"The decision to reduce staff this week, while difficult, is consistent with our commitment to our long-term roadmap and objectives for the year to prioritise unit economics and growth, improve our customer experience, reduce cost per unit and maximise liquidity," the company was quoted as saying.