Jobaaj Stories
US-based automotive digital marketplace, TrueCar recently announced a significant workforce reduction, with nearly 24% of its employees, or approximately 102 individuals, being laid off as part of a restructuring effort. Alongside this, Michael Darrow, the President, and CEO, has stepped down from his executive positions. Jantoon Riggersman, the former Chief Operating Officer (COO) and Chief Financial Officer (CFO) of TrueCar will take on these roles.
“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, 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.
As of May 31, 2023, TrueCar reported having cash and cash equivalents of $146.5 million. However, the company expects this amount to decrease below $125 million in the near future. TrueCar predicts break-even or positive adjusted EBITDA and double-digit year-over-year revenue growth in the fourth quarter of 2023.
The decision to reduce the workforce aligns with a broader trend in corporate America, as many companies have been compelled to trim their headcount due to a stormy economic environment characterized by inflation and rate hikes. TrueCar's restructuring efforts and leadership changes are aimed at making the company more efficient, and better positioned to navigate these challenging circumstances.
— Harshita Kumar
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