Rental car startup Kyte is reducing its operations significantly by exiting most U.S. markets and slashing its workforce by up to 50% as it aims for profitability. The company, which is now focusing on San Francisco and New York City, had previously expanded to over a dozen markets. CEO Nikolaus Volk stated that the decision was made after realizing the unsustainable unit economics in many regions. Kyte's restructuring follows a series of financial challenges, including heavy borrowing and a recent exploration of a potential sale. The company has also recently completed a new fundraising round.