TrueCar To Layoff About 102 Employees; Appoints Jantoon Reigersman As CEO

(RTTNews) - TrueCar, Inc. (TRUE) Wednesday announced layoffs of about 102 positions, or 24% of the company's headcount, as part of its strategic restructuring to "streamline the organization." The company also announced the appointment of Jantoon Reigersman as President and Chief Executive Officer.

Reigersman succeeds Michael Darrow, who is departing TrueCar and vacating his position on the Board. Shares of TrueCar jumped 12% following the news in the after-hours trade.

The restructuring is expected to result in cash payments of around $7 million, primarily in the second and third quarters of 2023, and an annualized reduction in expenses exclusive of stock-based compensation of over $20 million.

"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."

Reigersman recently served as TrueCar's Chief Operating Officer since March 2022. From January 2021 to February 2023, he also served as Chief Financial Officer. Before joining TrueCar, he served from December 2017 to May 2020 as the Chief Financial Officer of Leaf Group, Ltd., a diversified Internet, media and e-commerce company.