TrueCar stock jumps 8% after layoffs, new CEO news
Shares of TrueCar Inc. (TRUE) rallied more than 8% in the aftermarket Wednesday after the car-pricing platform announced a restructuring, which includes laying off 24% of its workforce, and a new chief executive. TrueCar said the restructuring is expected to "streamline" its operations and cut expenses by more than $20 million. The company appointed Chief Operating Officer Jantoon Reigersman its new CEO, replacing Michael Darrow, without providing more details. The layoffs will impact about 102 positions, TrueCar said. The company expects one-off restructuring charges of about $7 million, mostly to be incurred in the second and third quarters. TrueCar said it had about $146.5 million in cash and equivalents as of late May. While that amount is likely to drop below $125 million, the company "continues to anticipate breakeven or positive adjusted EBITDA and double-digit year-over-year revenue growth in the fourth quarter of 2023," it said. Shares of TrueCar ended the regular trading day up 1.7%.
-Claudia Assis
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06-14-23 1626ET
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