TrueCar laid off 24% of its workforce, or about 102 employees, as part of an effort to reduce costs and streamline operations. The company also named Jantoon Riggersman, its former chief operating officer and chief financial officer, as its new CEO. Riggersman takes over from Michael Darrow, who has resigned after five years as CEO.
TrueCar says the restructuring is part of a broader effort to focus on its long-term strategic goals. The company says it wants to be a more competitive and nimble player in the automotive industry, and it plans to do this by streamlining its operations, reducing costs, and investing in new technologies.
The layoffs are likely to have a significant impact on TrueCar employees. The company says it will provide severance packages and outplacement services to affected employees.
The TrueCar restructuring is a sign of the changing landscape in the automotive industry. As more and more consumers shop for cars online, traditional dealerships are facing increasing competition. TrueCar is hoping to position itself as a leader in the online automotive marketplace, and the restructuring is part of that effort.
The layoffs are expected to save TrueCar $20 million annually. The company says it will invest $10 million in new technologies, including artificial intelligence and machine learning. TrueCar is also planning to expand its marketing efforts.
It will be interesting to see how the restructuring plays out in the long run.
