In an effort to avoid the fate of WeWork or Uber, the car subscription company Fair is reducing costs and restructuring their business before they run into trouble.
Fair.com, a startup building a flexible car ownership business that is valued at $1.2 billion — backed by some $500 million in equity from SoftBank and others, plus billions more dollars in debt funding — said recently that it will be laying off 40% of its staff. On top of this, it is removing its CFO, Tyler Painter, the brother of the CEO and Co-Founder (and car business veteran) Scott Painter. He’s being replaced in the interim by Kirk Shryoc.
It’s not clear how many people 40% translates to in terms of headcount, nor which areas of the business will be affected. Fair’s CEO Painter is not disclosing the full number of employees the company has across the U.S., or which parts of the business are going to be restructured. (As a marker though, there are some 539 employees listed on LinkedIn, which would work out at about 215 people.)
He did note that the business is not planning on shuttering any specific operations: leasing services for those driving for on-demand services, and its consumer-focused service, will both remain operational, even as certain geographies and certain segments of the markets that Fair is serving are proving to be unprofitable.
This is one area where the CFO change will play.
“As Fair has grown, the skill sets needed to drive the business forward change. Kirk has a decade of experience running treasury and capital markets for large fleet companies, and is well known on the capital markets side,” the company said in a separate statement.
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