Facing market pressures and steep financial losses, Shift Technologies Inc. is launching a major restructuring that entails scaling back operations to focus on its West Coast presence and positioning itself as a retailer of budget-minded used vehicles.
Revising Shift's business plan is vital to getting the retailer on track for long-term profitability, Shift President Jeff Clementz told Automotive News last week. After posting a $109.2 million loss through the first half, Shift has moved into cost-cutting mode, as have other online used-vehicle retailers.
Shift has closed seven of its 10 maintenance and customer relations hubs — four in Texas, two in California and one in Washington. It also announced a planned merger with CarLotz, a used-vehicle consignment company based in Richmond, Va., and said it would cut 650 jobs through the end of this year.