San Francisco: US-based automotive digital marketplace TrueCar has announced the laying off of nearly 24 percent of its workforce, or about 102 employees, amid restructuring.
Michael Darrow, President, and CEO, has also stepped down from both of his executive positions, which will be filled by Jantoon Riggersman.
Reigersman previously served as TrueCar’s chief operating officer (COO) and chief financial officer (CFO).
“The restructuring announced today better aligns our cost structure with our revenue base and is designed to make TrueCar a nimbler, more efficient company,” Barbara Carbone, incoming Chair of the Board, said in a statement.
“We made this difficult decision after an extensive review and believe that it is necessary to enable TrueCar to achieve its strategic priorities and create long-term shareholder value,” she added.
Moreover, the company said that the restructuring is expected to result in non-recurring cash payments of approximately $7 million, primarily in the second and third quarters of 2023, and an annualised reduction in expenses exclusive of stock-based compensation of over $20 million.
As of May 31, 2023, TrueCar had cash and cash equivalents of approximately $146.5 million.
However, the company expects that in the near term, this aggregate cash balance could drop below $125 million.
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