Vroom Inc. said Monday it cut employment by 337 positions and sold far fewer vehicles in the second quarter as part of the business realignment strategy it announced in May, which is partially aimed at reducing its expenses.
The online used-vehicle retailer also said it closed offices in New York City and Detroit and shuttered several used-car buying centers in Texas as part of that plan. It also closed the service center of Texas Direct Auto, a physical dealership location in Stafford, Texas. The service center is being repurposed.
Vroom on Monday reported a second-quarter net loss of $115.1 million, smaller than its $310.5 million net loss in the first quarter but larger than its $65.8 million loss a year ago.
It also reported that revenue tumbled 38 percent to $475.4 million in the quarter. That included a 45 percent drop in e-commerce revenue compared with the year-earlier period.
Vroom’s volume of cars sold online dropped by about half in the second quarter to 9,233 vehicles. But profitability for those cars sold online soared 34 percent to a record of $3,629 per vehicle.
Vroom, which in May also appointed a new CEO, previously said it would cut vehicle sales to focus on increasing gross profit per vehicle and making sales margins more sustainable.
The company reduced its operating expenses by $35 million during the period. It ended the quarter with $533 million in liquidity.
“We are making progress in reducing our cost structure as detailed in our business realignment plan presented in May,” CFO Bob Krakowiak said in a statement.
Shares of Vroom fell 18 percent to $2.02 in Monday after-hours trading.
Q2 revenue: $475.4 million, down 38 percent from the year-earlier period
Q2 e-commerce revenue: $321.6 million, down 45 percent
Q2 net loss: Loss of $310.5 million, wider than Vroom’s $65.8 million loss a year earlier
Q2 e-commerce vehicles sold: 9,233, down 49 percent