DealerTrack (TRAK) Announces Workforce Reductions and Realignment in Business

January 5, 2009 4:06 PM EST

DealerTrack Holdings, Inc. (Nasdaq: TRAK) announced a realignment of its workforce and business aimed at sharpening its focus on high growth opportunities. The company plans to reduce its workforce by approximately 90 people, or 8% of its total employees, including several executive and senior-level positions. The company currently anticipates annualized salary savings of approximately $7.0 million from these reductions. DealerTrack plans to continue to invest in those areas that are still showing strong growth despite the challenging economy.

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 after its Annual Report on Form 10-K is filed 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 has been appointed Senior Vice President and Chief Administrative Officer and will also become Chief Financial Officer upon Mr. Cox’s departure. [SM]

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