TrueCar cuts 30% of workforce
Scott Painter, who has returned as CEO of TrueCar after leading a group to take it private. Image courtesy of company.
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Acknowledging, “this is the hardest part of being a leader,” TrueCar founder and CEO Scott Painter announced through a news release that the company is reducing its workforce by 30% effective Tuesday.
TrueCar said its new senior leadership team met individually with every employee across the organization to understand each role and how it supports its mission.
Following that review, TrueCar said it is “right-sizing the business to prioritize quality over quantity, profitability over growth-at-all-costs, and execution over expansion. These changes are necessary steps to build a sustainable organization and complete the turnaround of a historically unprofitable company.”
The organizational changes follow an in-depth operational review following the completion of the company’s go-private transaction, which finalized in January.
And earlier this month, TrueCar said it would shift its focus away from three initiatives: TrueCar+, TrueCar Marketing Solutions (TCMS), and TrueCar Wholesale Solutions (TCWS).
“We approached this thoughtfully and deliberately as a necessary step to refocus the company on its mission,” Painter said in Tuesday’s news release. “As soon as I reacquired TrueCar, I personally met with every single team member to understand where the company is today so we can get on track to becoming a sustainable, mission-based company.”
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Going forward, TrueCar said it will concentrate its resources on strengthening its position as a vehicle-buying platform. The company said will prioritize delivering clearer pricing insight, higher-quality dealer relationships, and a more efficient transaction experience for consumers.
Painter explained that the strategic shift reflects a move from a quantity-driven marketplace model to a quality-driven platform.
“We are laser-focused on identifying opportunities to strengthen our product and company to ensure TrueCar is actively delivering meaningful value to customers and partners, right now,” Painter said.
With this return to mission, TrueCar said it expects that in “a few short years” it can generate 1 million vehicle sales per year on its platform to generate more than $1 billion in annual revenue.
“Through disciplined execution, product focus, and stronger dealer alignment, TrueCar will work towards delivering approximately threefold growth,” the company said.
