TrueCar Inc. is laying off a nearly a quarter of its work force and appointed COO Jantoon Reigersman as its new CEO to help the struggling vehicle listings company amid a restructuring.
The Santa Monica, Calif., company said Wednesday that it will cut 102 positions, or 24 percent of its work force. Reigersman, 41, replaces CEO Mike Darrow, 66, who also has left his board position.
Barbara Carbone, TrueCar’s incoming board chair, said in a statement that restructuring would help the company better align its costs with revenue “and is designed to make TrueCar a nimbler, more efficient company.”
Shareholders reacted favorably to the news, driving shares of TrueCar up more than 12 percent to $2.78 in after-hours trading.
TrueCar said the job cuts and a realignment of its leadership structure will slash employment expenses by more than $20 million annually, excluding stock-based compensation.
The company said it will incur $7 million in restructuring charges, excluding stock-based compensation, in the second and third quarters. Those expenses include one-time employee benefits and severance payments. Most of the plan will be complete by the third quarter,
according to a regulatory filing.
The company said it expects to break even or have positive adjusted earnings before interest, taxes, depreciation and amortization in the fourth quarter.
