TrueCar Inc. has announced significant changes to its management and workforce, with the aim of restoring the health of its vehicle listings business. The Santa Monica, California-based firm will lay off 102 employees, which equates to a quarter of its workforce. Meanwhile, its COO, Jantoon Reigersman, will step up to become TrueCar’s new CEO. He replaces Mike Darrow, who has also left his board position.
TrueCar’s incoming board chair, Barbara Carbone, has welcomed the moves, saying that the restructuring will help to align the firm’s costs with its revenue and make it a more agile and efficient company.
The market has reacted positively to the restructuring, with shares in TrueCar climbing by over 12 percent in after-hours trading, to $2.78.
The changes are designed to save TrueCar over $20 million annually in employment expenses, excluding stock-based compensation. However, the restructuring will also involve one-off costs of around $7 million, covering severance payments and employee benefits.
While the bulk of the restructuring is set to be implemented by the third quarter, with most of the savings visible thereafter, the company expects to reach break-even or positive adjusted earnings before interest, taxes, depreciation and amortization by the fourth quarter.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
