Struggling vehicle listings company TrueCar is conducting a restructuring plan that includes a CEO replacement and a significant reduction in its workforce.
Almost 102 positions would be eliminated, accounting for approximately 24 percent of its employees.
As part of the leadership replacement, COO Jantoon Reigersman, 41, will take over as the new CEO, succeeding Mike Darrow, 66, who has also left his board position.
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The company aims to align its costs with revenue and become more efficient.
The job cuts and leadership realignment are expected to reduce employment expenses by more than $20 million annually, excluding stock-based compensation.Â
TrueCar estimates $7 million in restructuring charges, primarily for one-time employee benefits and severance payments, in the second and third quarters.
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It has been facing significant losses, with net losses growing to $19.6 million in the first quarter, compared to $12.4 million in the same period last year.
The company aims to achieve breakeven or positive adjusted earnings before interest, taxes, depreciation, and amortization in the fourth quarter.
Barbara Carbone, TrueCar’s incoming board chair, expressed gratitude to Darrow for his leadership and contributions to the company.
Darrow joined TrueCar in 2017 and served as interim CEO before assuming the role permanently in 2020.
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Reigersman, who has been with TrueCar since 2021 as CFO and became COO in 2022, will lead the company’s transformation efforts.Â
He brings experience from his previous roles at Leaf Group, Morgan Stanley, and Goldman Sachs.
The restructuring plan aims to address TrueCar’s financial challenges and drive long-term shareholder value.
The company expects most of the plan to be completed by the third quarter as it strives to improve its financial performance and adapt to the evolving automotive market.
