Cars.com, the online car marketplace and platform, recently announced they will be laying off 70 employees, around 5% of their total staff, as a move toward reinventing their current technology infrastructure and change the state of their cloud-based systems.
The Chicago-based company said most of the workers being dismissed are based in Chicago and involved in the company’s information systems and technology divisions.
At the same time, the company is also promoting Fred Lee to chief technology officer and David Domm to chief product officer to replace Tony Zolla, who previously oversaw those responsibilities but will be leaving the company soon.
CEO Alex Vetter said in an interview that the employee reduction was a “tough” but necessary decision to modernize the company’s technology infrastructure. “We’re making deliberate shifts to improve and migrate our technology platform to the cloud,” he said.
The changes follow another major Cars.com decision last month to consider a possible saleof the 21-year-old company. Cars.com has come under pressure recently from a New York-based activist hedge fund, Starboard Value, which has demanded that management improve the company’s stock performance or step aside.
Shares of the company have dropped about 20 percent from a 52-week high of $32.94 reached in July. They declined 38 cents to $26.20 in midmorning trading.
Read more here
Join us in Bangkok the 19th to the 21st of March for the Property Portal Watch Conference.