TrueCar announces 24% workforce reduction, strategic restructuring

TrueCar announced a strategic restructuring to streamline the organization, including a workforce reduction impacting approximately 102 positions, or 24% of the company’s headcount, and the appointment of Jantoon Reigersman as President and CEO. Reigersman succeeds Michael Darrow, who is departing TrueCar and vacating his position on the Board. 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 annualized reduction in expenses exclusive of stock-based compensation of over $20M. As of May 31, 2023, TrueCar had cash and cash equivalents of approximately $146.5M. Although management expects that in the near term this aggregate cash balance could drop below $125m, it continues to anticipate breakeven or positive Adjusted EBITDA and double-digit year-over-year revenue growth in the fourth quarter of 2023. “The restructuring announced today better aligns our cost structure with our revenue base and is designed to make TrueCar a nimbler, more efficient company,” said Barbara Carbone, incoming Chair of the Board. “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.”