Shift Technologies announces operational restructuring as part of strategic review

By Wendy Van Sickle

Columbus, Ohio, July 12 – Shift Technologies Inc. is reviewing strategic alternatives and announced an operational restructuring that will reduce it workforce by about 34%, according to a news release.

The company also said it decided to eliminate investment into its dealer marketplace business in order to focus on core operations.

The company recently appointed a new chief executive officer, Ayman Moussa, who said changes announced Wednesday were a result of his observation during his first month in the role.

“These changes include eliminating centralized operations roles, putting more ownership to team members on the ground in our hubs, as well as eliminating investment into the dealer marketplace. We are moving with a great sense of urgency to improve performance and maximize our cash runway,” Moussa said in the release.

On May 15, the company missed a $3.6 million interest payment to holders of its $150 million 4.75% convertible notes due 2026, but Shift made the payment on June 13, within the 30-day grace period, as previously reported. At that time, the company and its advisers are continuing to communicate with debt holders to explore restructuring options.

Shift Technologies is a San Francisco-based used car e-commerce platform.

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