TrueCar Trims Workforce as USAA Pulled out of Strategic Revenue Share
Posted on 05/28/2020
Santa Monica-based TrueCar, Inc., an automotive digital marketplace, announced a 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 in 2019, 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 US$ 35 million.
In February, TrueCar disclosed its partnership with USAA Federal Savings Bank will end at the close of the third quarter of 2020. TrueCar’s online car-buying service has been driven by a revenue-sharing partnership with USAA for 13 years. TrueCar will continue revenue sharing with USAA through September 30, 2020 and paid a US$ 20 million transition services fee to TrueCar.
TrueCar was incorporated in the State of Delaware in February 2005 and began business operations in April 2005. In December 2018, TrueCar acquired DealerScience.
