TrueCar’s CEO was out of the building and the company laid off 102 employees, 24 percent of its total staff, the company announced Wednesday. This comes after growing losses left TrueCar $19.6 million short in the first quarter of this year, following $18.1 million in the previous quarter and $12.4 million in early 2022 .
From auto news:
Barbara Carbone, Upcoming Board President of TrueCar, The restructuring will help the company better align costs with revenue “and is designed to make TrueCar a more agile, efficient company,” said in a statement. […]
The company said the job cuts and leadership reorganization would cut employment costs by more than $20 million annually, excluding stock-based compensation.
TrueCar said it will incur $7 million in restructuring fees, excluding stock-based compensation, in the second and third quarters. Those costs include one-time employee benefits and severance pay. Most of the planning will be completed by the third quarter, according to a regulatory filing.
The company said it expected to break even or have positively adjusted earnings before interest, tax, depreciation and amortization in the fourth quarter.
Now that former CEO Mike Darrow has left the company after six years at the car-listing company, the company has struggled to convert service and website traffic into car sales. agency. A new attempt was launched in April, TrueCar Wholesale Solutions, is specifically focused to maximize opportunities in the increasingly competitive and fierce second-hand market. But it’s still too early to pay dividends, if any.
This is the latest chapter in what has been a challenging existence for TrueCar, a company that has always been at the forefront of agents, needs their support. But hey – at least its shares jumped more than 12% after the announcement, so it looks like investors feel these measures are long overdue.
