(Reuters) – TrueCar said on Wednesday it was laying off 24% of its workforce as part of restructuring that would result in $20 million of annualized expense reduction for the automotive digital marketplace.
The cuts, which impact 102 positions, come alongside the elevation of Chief Operating Officer Jantoon Reigersman to the role of chief executive officer.
As of May 31, the company had nearly $146.5 million of cash and cash equivalents, but its management was expecting aggregate cash balance to drop below $125 million in the near term.
However, TrueCar said the fourth quarter will see double-digit year-over-year revenue growth and breakeven or positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
A stormy economic environment brought on by inflation and rate hikes has prompted several companies across corporate America to trim their headcount.
(Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel)
