AutoWeb Implements Cost Reductions in Response to COVID-19, Including Voluntary Executive Salary Reductions

Cost Reductions Expected to Save $1.6 Million in 2020

AutoWeb, Inc., a robust digital marketing platform providing advertising solutions for automotive dealers and OEMs, has implemented a series of cost actions in response to COVID-19, including reduced executive and board compensation to mitigate the financial impact to other members of the team. The cost reductions are expected to save approximately $1.6 million in cash expenditures in 2020.

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Cost Actions

• Reduced recruitment, travel, consulting and B2B marketing expenses
• Consolidation of various technology tools and products
• Voluntary executive salary reductions for the second quarter
  • CEO Jared Rowe has taken a 30% salary reduction
  • All other members of the executive team have taken a 10% salary reduction
• The board of directors have taken a voluntary 50% compensation reduction for the second quarter
• Limited employee furloughs and staff reductions

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“As discussed on last week’s earnings call, we have begun to implement various cost reductions in response to COVID-19,” said CEO Jared Rowe. “To mitigate the financial impact to our broader team, all executives and board members have taken a voluntary pay cut. We are also implementing furloughs and layoffs with a targeted approach so that we can support as many team members as we can during these challenging times, while minimizing business disruption in serving our dealer and OEM customers. Our priority in designing this workforce plan is to allow for continued access to healthcare for team members during this public health crisis, as well as managing our operating costs given the rapidly developing impacts to the automotive industry.  We will continue to evaluate other cost reduction measures and explore all options and government subsidies to maximize employment for our team, including participation in the federal government’s Paycheck Protection Program.”

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