Struggling auto retailer Vroom ( NASDAQ: VRM ) announced a significant headcount reduction in an SEC filing on Wednesday after the bell.
The filing stated that the company handed pink slips to 275 employees, amounting to about 20% of the company’s overall workforce, excluding United Auto Credit Corporation. The latest round of layoffs leaves the company with only half the number of employees it began 2022 with.
The filing adds that the company will incur a $4M charge related to the layoffs, but expects to save $27M for the full year as a result of the reductions. Shares of the New York-based online auto retailer rose modestly in Wednesday’s extended session.
Read more on used auto price trends as of late .
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Vroom slashes workforce by 20%