DealerTrack to cut 90 jobs, 8 percent of workers

LAKE SUCCESS, N.Y.—DealerTrack Holdings Inc., which makes software for auto dealers, said Monday it would shake up its executive ranks and cut 8 percent of its work force, or about 90 jobs.

DealerTrack expects to incur a pretax restructuring charge of $6.8 million to $7.8 million in the first quarter, including about $3.5 to $4.0 million of net compensation expense.

The announcement was one more sign of the trouble facing the U.S. auto industry, with the recession hurting car sales.

Lake Success-based DealerTrack expects the job cuts to reduce salary costs $7 million per year.

The company said the cuts would hit several executive and senior-level jobs. It said Chief Financial Officer Robert Cox would leave after the company files its annual report in February, that senior vice president David Trinder has left and that senior vice president and chief information officer Charles Giglia will take a non-executive role.

Cox will be replaced by Eric Jacobs, who will also become chief administrative officer. He had been general counsel. Trinder will be replaced by Richard McLeer, the senior vice president of strategy and development.

Chairman and Chief Executive Mark F. O'Neil said the cuts were necessary because of the continued decline in cars sold and financed in the U.S., combined with "the uncertain outlook for 2009."

DealerTrack shares rose 52 cents, or 4.2 percent, to $12.86 in regular trading before the announcement. In extended trading, they fell 25 cents, or 1.9 percent, to $12.61.