TrueCar, Inc. announced today a strategic restructuring of its workforce to reinforce its pursuit of a best-in-class car buying experience.
In anticipation of the termination of its partnership with USAA Federal Savings Bank later this year, TrueCar initiated a workforce reduction impacting 219 positions, over 30% of the organization. The timing and scope of the reduction was accelerated by the impact of COVID-19. As part of the workforce reduction, the company expects to reduce annual expenses related to headcount, excluding stock-based compensation, by approximately $35 million.
Strategic restructuring to support a leaner operating model and reinforce focus on the consumer experience
In parallel with the workforce reduction, TrueCar also made changes to better align its organizational structure with its strategic priorities. Notable changes include:
Formation of new Consumer Group composed of product, consumer acquisition, consumer marketing and affinity partner teams. This consolidation will encourage cross-functional collaboration and alignment in pursuit of a best-in-class consumer experience.
Formation of a new Solutions Group composed of dealer sales & service, OEM sales & service and ALG. This consolidation will simplify and unify the company’s go-to-market approach.
No change to second quarter or full year 2020 financial commentary
Today’s announcement does not change the financial commentary management provided on the first quarter earnings call in early May.
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SOURCE: TrueCar
