Vroom shuts down e-commerce operations, cuts nearly 90 percent jobs

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San Francisco. Vroom, the US-based leading e-commerce platform for buying and selling used vehicles, has announced that it is shutting down its e-commerce operations, as well as its used vehicle dealership business.

During this period, approximately 800 employees will be laid off, which is approximately 90 percent of the total workforce.

“The company estimates that substantial implementation of the Value Maximization Plan will impact approximately 800 employees, approximately 90 percent of which are not involved in UAC or CarStory’s operations,” Vroom said in a filing with the U.S. Securities and Exchange Commission (SEC). There will be reduction in staff.

Under the Value Maximization Plan approved by Vroom’s Board of Directors, the company is suspending transactions through Vroom.com, planning to sell its current used vehicle inventory through wholesale channels, and pausing purchases of additional vehicles. Has been.

The company expects the value maximization plan to be substantially implemented by March 31, 2024.

“As we previously disclosed, we intend to use additional funds to fund our operations and support the expansion of the vehicle floorplan facility beyond the current closing date of March 31, 2024,” Thomas Short, the company’s chief executive officer, said in a statement. It is to raise capital.

“Despite significant efforts to do so, we were ultimately unable to raise the necessary capital in the current market,” he said.

–IANS

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