UPDATE 1-DealerTrack to cut 90 jobs; says CFO to leave
Jan 5 (Reuters) - Software company DealerTrack Holdings Inc (TRAK.O) said it would reduce its workforce by about 8 percent and incur a restructuring charge, adding that its chief financial officer will be leaving the company. The provider of software for the U.S. automotive retail industry plans to cut about 90 jobs as a continued decline in U.S. car sales and the number of vehicles financed weighs.
The U.S. auto industry is hit hard by the weakening economic environment which has shattered consumer confidence. Major automakers reported U.S. sales in December that plunged by more than a third, closing out the weakest year for the industry in over a decade and a half in its largest single market.
The company expects annual salary savings of about $7 million from the job cuts. It also sees a restructuring charge of between $6.8 million and $7.8 million on a pre-tax basis in the first quarter of 2009.
DealerTrack said CFO Robert Cox will be leaving after its annual report is filed with the U.S. regulators in February.
Eric Jacobs, who was formerly the company's senior vice president and general counsel, will replace Cox, it said in a statement.
Shares of the company closed at $12.86 Monday on Nasdaq. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Deepak Kannan)
