Item 8.01 Other Events.
On January 18, 2023, Vroom, Inc. (the "Company" or "Vroom") executed a reduction
in force as part of the Company's continued focus on reducing variable and fixed
costs as we pursue our three key objectives of prioritizing unit economics,
reducing operating expenses and maximizing liquidity, as outlined in our
long-term roadmap. We reduced Vroom's headcount by approximately 275 employees,
or approximately 20% of Vroom employees, excluding United Auto Credit
Corporation ("UACC"), or approximately 13% measured across the combined Company.
Combined with prior reductions, this reflects an approximately 50% reduction of
Vroom employees and contractors (excluding UACC) since January 2022.
The Company expects to incur total cash charges of approximately $4.0 million,
primarily consisting of severance, and expects to achieve approximately $27.0
million of annualized cash savings as a result of the reduction in force.
Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. All statements
contained in this Current Report on Form 8-K that do not relate to matters of
historical fact should be considered forward-looking statements, including
without limitation statements regarding expected cash savings. These statements
are based on management's current assumptions and are neither promises nor
guarantees, but involve known and unknown risks, uncertainties and other
important factors that may cause our actual results, performance or achievements
to be materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. For factors that could
cause actual results to differ materially from the forward-looking statements in
this Current Report on Form 8-K, please see the risks and uncertainties
identified under the heading "Risk Factors" in our Annual Report on Form 10-K
for the year ended December 31, 2021, as updated by our Quarterly report on Form
10-Q for the quarter ended September 30, 2022, each of which is available on our
Investor Relations website at ir.vroom.com and on the SEC website at
www.sec.gov. All forward-looking statements reflect our beliefs and assumptions
only as of the date of this Current Report on Form 8-K. We undertake no
obligation to update forward-looking statements to reflect future events or
circumstances.
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