In a wide-ranging update shared late Thursday afternoon, Cars.com confirmed it has initiated a cost-reduction program, which includes workforce trimming of approximately 11% of its full-time positions, along with process changes and vendor cost optimization.

The company said in a news release the moves are expected to generate $25 million to $30 million in recurring annualized operating cost savings in 2027, while supporting 2026 profitability targets.

Cars.com said this cost initiative is expected to be completed during the early part of the second quarter and incur aggregate related one-time charges of approximately $8.5 million to $9 million, substantially all of which will be recognized in its Q1 financial statement.

Leadership also revealed the company’s reporting structure has been flattened to empower faster decision making.

Roughly 20% of eliminated roles are within management layers, including two executive roles, according to Cars.com.

The company highlighted its plan also includes accelerating product development and innovation.

For example, the new Cars.com dealer app is an artificial intelligence-powered mobile assistant that can provide on-the-go analytics and recommendations tailored to drive sales for each dealer’s unique inventory.

Cars.com also noted advanced shopper alerts were launched for Premium+ customers in late March, integrating new AI- and location-enabled insights from the Cars.com marketplace directly into the dealer’s CRM for the first time.

“Together, these products drive efficiencies for dealers by turning Cars.com proprietary data into actionable insights across the sales process,” the company said in the news release.

Also connected to finances, Cars.com said it is raising its full-year share repurchase target from more than $60 million to $90 million. As of Wednesday, the company said it has repurchased approximately 2.9 million shares of common stock for $24 million, representing 5% of shares outstanding as of Dec. 31, 2025.

Furthermore, the company reaffirmed its quarter and full-year guidance, which includes:

—Q1 2026 revenue growth of flat to up 1% year-over-year and adjusted EBITDA margin of 26% to 27%

—Full year 2026 revenue growth of flat to up 2% and adjusted EBITDA margin of 29% to 30%

Cars.com CEO Tobi Hartmann explained why these choices have been made.

“We are moving quickly to execute our 2026 initiatives and make changes that support healthy long-term growth,” Hartmann said in the news release. Better internal processes and a more nimble organization are essential to accelerate the Marketplace flywheel while also growing responsibly to create shareholder value.

“Simplifying our business also provides more bandwidth to dedicate to key products, like AI, data and analytics, that we believe are critical to the future of automotive retail,” he continued.

“We are grateful to the employees whose contributions have helped shape Cars.com into what it is today, and we enter this next chapter with conviction and a clear path forward,” Hartmann went on to say.