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Autobytel In Play
The automobile internet marketing company has slashed its workforce and announced a strategic review.
September 29, 2008
Despair facing the consumer sector has now reached beyond the limits of brick-and-mortar businesses, as internet automobile marketing company Autobytel Inc. struggles to find its footing.
Last year, the owner of automotive websites MyRide.com, Car.com, CarSmart.com, and CarTV.com announced a cost-cutting initiative which has now taken the shape of an announced elimination of 35% percent of its staff and announced that the company is seeking strategic alternatives.
The company, which has posted losses every quarter since 2005, expects it will save about $10 million per year as a result of the cut of 75 positions.
President and chief executive officer Jim Riesenbach said, “As we navigate through this challenging economy, we are taking all the necessary and proactive, though sometimes difficult, steps to further reduce costs. We believe that at the end of this process we will have a leaner, more focused company, right-sized to compete in the current economic climate.”
In an analyst report obtained by Thomson ONE Analytics, Christa Quarles and Jennifer Wang of Thomas Weisel Partners caution investors to remain on the sidelines pending “further evidence of a turnaround.”
Autobytel retained RBC Capital Markets Corporation as its financial advisor in the strategic evaluation.
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