Vehicle listings company TrueCar is jelling nicely as a smaller entity in the wake of a 24 percent work force reduction and restructuring announced in June, new CEO Jantoon Reigersman said during the company’s second-quarter earnings call Tuesday.
“The team is working tremendously well coming together,” Reigersman said. “It’s a smaller team, it’s a nimble team, and the team continues to work super hard. It’s an exciting time for the company.”
Reigersman, most recently TrueCar’s COO, was appointed CEO as part of the company’s restructuring plans. His brief comments about the staff reductions came at the end of the investor call.
TrueCar said in June that it would cut 102 positions, and the effort would 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.
It will take some time before TrueCar, of Santa Monica, Calif., realizes a promised $20 million in savings from the job cuts, CFO Teresa Luong said during the investor call.
Luong said the company received some financial benefit from the reductions during the second quarter, though the full impact will take time.
“In regard to Q3 and Q4 we do expect some benefits but not to the full extent we disclosed in regard to a $20 million annualized savings,” Luong said.
The company is managing and examining its cost structure closely beyond the job cuts, she added.
“When you think about our cost structure, there’s headcount, marketing and other expenses,” Luong said.
Marketing spend remains flat quarter over quarter, she added, and the company is ready to adjust spending in real time based on trends it sees.
TrueCar’s net losses grew to $20.4 million during the second quarter, up from an $11 million loss in the previous year and a $19.6 million loss the previous quarter. Revenue dropped 7.1 percent to $39.3 million but is up 6.3 percent from the first quarter.