DealerTrack Holdings Inc., a provider of software and data solutions for the U.S. automotive retail industry, announced Monday plans to downsize its workforce by 8 percent, or approximately 90 employees.
The company said the cuts will include several executive and senior-level positions, which will result in annualized salary savings of approximately $7 million.
"The continued decline in U.S. car sales and the number of vehicles financed, together with the uncertain outlook for 2009, necessitated an adjustment in our current expense levels," said Mark F. O'Neil, chairman and chief executive officer of DealerTrack. "The goal of this realignment is to make DealerTrack a leaner and more focused company and to facilitate growth and continued expansion of the business."
The company expects to incur a restructuring charge in the first quarter of 2009 of between $6.8 and $7.8 million on a pre-tax basis, including approximately $3.5 to $4.0 million of net non-cash compensation expense. In connection with this realignment, the company is announcing a number of executive changes. Robert Cox, senior vice president and chief financial officer, will be leaving the company in February. David Trinder, senior vice president, Network Solutions, has left the company and Charles Giglia, senior vice president and chief information officer, will move to a non-executive role.
Eric Jacobs was appointed senior vice president and chief administrative officer. He will also become chief financial officer upon Cox's departure. Jacobs was formerly the company's senior vice president and general counsel. Jacobs was also an audit manager and CPA at KPMG LLP before he became an attorney.
Richard McLeer was named senior vice president and chief information officer. Previously, McLeer was senior vice president, strategy and development.
All product design, development and support, including our ALG and Chrome businesses, have been consolidated under Raj Sundaram, senior vice president, product management and customer support.
Sales, marketing, DealerTrack Digital Services and DealerTrack Canada have also been consolidated under Rick Von Pusch, senior vice president, sales, marketing and international. Additionally, Gary Papilsky was promoted to vice president and general counsel.
"The changes we are making are necessary to keep DealerTrack nimble, preserve our leadership position in the industry and continue to build on our successes," said Mr. O'Neil. "I thank Bob, David, Charlie and our other affected employees for their valuable contributions to the company and wish them success in their future endeavors."