CARS Stock Rallies After-Hours On 11% Layoff, Increased Buyback Plans

• The cost cutting initiative is expected to be completed in Q2 2026 and incur one-time charges of about $8.5-$9 million.
• The firm also noted that about 20% of the roles eliminated were management roles.
• The U.S.-based digital automotive marketplace also raised its full-year share repurchase target from $60-plus million to $90 million.

Shares of Cars.com (CARS) jumped 7% in post-market hours on Thursday after the company announced a 11% reduction in full-time roles in a bid to cut costs and raised its full-year share repurchase target.

The company said that the layoffs, which includes roles within management layers, in addition to process changes and vendor cost optimization, is expected to generate $25-30 million in recurring annualized operating cost savings in 2027 and support 2026 profitability targets.

The cost cutting initiative is expected to be completed in Q2 2026 and incur one-time charges of about $8.5-$9 million, the firm added. It also noted that about 20% of the roles eliminated were management roles, which were cut down to make the reporting structure more flat and empower faster decision making.

Financial Update

The U.S.-based digital automotive marketplace also raised its full-year share repurchase target from $60-plus million to $90 million and reaffirmed its FY2026 guidance involving revenue growth of flat to up 2%, and adjusted core profit margin of 29% to 30%.

For the first quarter of 2026, the company expects revenue growth to be in the range of flat to up 1% year-over-year and adjusted core profit margin of 26% to 27%.

As of Wednesday, the company said that it repurchased shares worth $24 million.  

How Did Retail Traders React?

On Stocktwits, retail sentiment around CARS stock stayed within the ‘bullish’ territory over the past 24 hours, while message volume fell from ‘high’ to ‘normal’ levels.

A Stocktwits user applauded the company’s decision to up its buyback targets.

CARS stock has dropped 22% over the past 12 months. 

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