Shift Announces Workforce Reductions and the End of its Investment in Dealer Marketplace

Shift recently announced that it would be reducing its headcount by roughly 34% as part of a plan from the company’s newly named CEO’s plan to review Shift’s strategic alternatives.  This is the second round of layoffs Shift has announced this year as it previously announced headcount reductions of 30% in March.  Shift anticipates these layoffs will save the company $14 million in annual SG&A expenses as well as nearly $1 million in non-recurring expenses.

As part of the strategic review, Shift also eliminated investment into the dealer marketplace. Shift acquired Fair’s dealer listing marketplace technology in 2022 with the plan to use it to build a dealership listings marketplace.  The company also closed the operations of the East Coast CarLotz stores in February.  Shift merged with CarLotz in 2022.