Automotive digital marketplace TrueCar slashes 24% of headcount (updated)

TrueCar

14/06/2023 22:42

(Adds revenue, adjusted EBITDA forecast in paragraphs 3 and 4)
       June 14 (Reuters) - TrueCar  TRUE.O  said on Wednesday
it was laying off 24% of its workforce as part of restructuring
that would result in $20 million of annualized expense reduction
for the automotive digital marketplace.
        The cuts, which impact 102 positions, come alongside the
elevation of Chief Operating Officer Jantoon Reigersman to the
role of chief executive officer.
        As of May 31, the company had nearly $146.5 million of
cash and cash equivalents, but its management was expecting
aggregate cash balance to drop below $125 million in the near
term.
  
        However, TrueCar said the fourth quarter will see
double-digit year-over-year revenue growth and breakeven or
positive adjusted earnings before interest, taxes, depreciation
and amortization (EBITDA).
  
        A stormy economic environment brought on by inflation
and rate hikes has prompted several companies across corporate
America to trim their headcount.
  

 (Reporting by Niket Nishant in Bengaluru; Editing by Maju
Samuel)
 ((Niket.Nishant@thomsonreuters.com;))