When TrueCar president and Chief executive officer Chip Perry announced a revamp of the car-shopping site, he failed to mention one big alter: layoffs.
According to a supply?and confirmed by TrueCar, an undisclosed number of the company’s employees — mostly located at its headquarters in Santa Monica – received layoff notices yesterday.
TTAC learned some employees in TrueCar’s development team received layoffs, according to a source. Nevertheless, when asked, TrueCar wouldn’t detail the departments affected nor the number of employees laid off.
According in order to company spokesperson?Carly Schaffner, the layoffs are part of a company realignment.
“We are constantly analyzing ways in which we can better serve car buyers, dealers and car manufacturers. We recently established that organizational changes were necessary to much more closely align our workforce with the requirements of the business,” stated Schaffner.
“While we intend to add employees in certain regions of the company – most notably to our dealer product sales and service group – a determination is made that reductions were needed in other areas. Sadly, this has resulted in the actual elimination of a number of jobs, mainly in our Santa Monica office. We are grateful for the service of all our employees and will work to make this transition as seamless as you possibly can.”
The layoffs closely follow?Perry’s pledge in order to dealers that layed out a list of changes to improve transparency for customers whilst bringing dealers onside.
“Our goal is to provide the best value for car purchasers and dealers among all third-party automotive sites, however it was apparent in my experience that there were aspects of TrueCar’s service that were suboptimal,Inch Perry said at the time.
TrueCar is not immune to controversy as of late.
A group of 100 sellers launched a lawsuit towards TrueCar last year, claiming the organization engaged in “deceptive business practices” by not disclosing the?$299 and $399 dollar fees paid by dealers for new as well as used car sales brokered through TrueCar.
AutoNation, one of the largest dealer groups in the United States, broke its relationship with TrueCar in July 2015, apparently because TrueCar wanted substantial access to AutoNation’s product sales data.
In August 2015, then-CEO Scott Painter announced he would leave the company toward the end of 2015. He was substituted with Perry, a former AutoTrader CEO, in November 2015.
TrueCar stock offers plummeted?from $16.13/share a year ago to $5.22/share at today’utes open, representing a?loss in value of a lot more than 66 percent.