That’s just a long way of saying this isn’t going to be the best week for employees of Fair, an automotive subscription startup. The company said it plans to get rid of 40 percent of its staff, reports said. It will also be letting go of CFO Tyler Painter, who is the brother of CEO Scott Painter. His interim replacement will be Kirk Shryoc.
The move comes about a month after Fair, which functions via an app, secured a $500 million revolving credit facility led by Mizuho Bank. SoftBank Group Corp. was among several credit providers also participating in the loan, which will be used to unlock new levels of growth for both Fair and its partner Uber by boosting the supply of rideshare vehicles for Uber drivers.
Analysts are framing this issue as Fair’s response to a spate of venture-backed startups like Uber and WeWork, companies that have struggled to find profitability despite large valuations. Cutting back on staff is reportedly an effort to avoid a similar fate.
The company said in a statement:
“As Fair has grown, the skillsets 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. We’ve been working with him over the course of this year, and given our renewed focus on our acquisition and financing approach, now was the right time to ask him to step in to manage our upstream banking relationships and the fleet management.”
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