Trulia (TRLA) acquired Market Leader last year to much fanfare.
At the time, Trulia CEO Pete Flint said, "We are very excited that the deal is official and we can now provide the real estate industry with the finest marketing and software tools, all under one roof." Now it appears that Trulia's roof doesn't have quite enough room for everyone.
According to a filing with the Securities and Exchange Commission, Trulia’s board of directors approved a reorganization plan for Market Leader to “integrate the operations of the subsidiary with those of Trulia, and to eliminate overlapping positions.”
What does that mean? It means that Trulia is set to “reduce” the workforce of Market Leader by several senior executives and approximately 85 employees.
The 85 employees that Trulia is laying off are “primarily in the sales and general and administrative functions.” The company expects to spend between $4-6 million in facilities-related costs, severance and employee benefits and other third party expenses on the “reorganization.”
The 85 employees aren't all that’s being cut from Market Leader. Trulia’s SEC filing also details the departure of Ian Morris, who was Market Leader’s president. Morris’ last day of employment is expected to be September 4, 2014. After that, he will serve as a consultant to Trulia through August 31, 2015.
Upon the termination of his employment, Morris will receive 12 months of salary, a lump sum bonus payment equal to his 2013 bonus payment, and other benefits.
According to Geekwire, Flint sent a letter to all Trulia employees on Wednesday recapping the changes. In that letter, he also announced the departures of Jacqueline Davidson, Market Leader’s chief financial officer; Sarah Daniels, Market Leader’s chief marketing officer; and Alex Lange, Market Leader’s chief technology officer.
In the letter, Flint said that Davidson, Daniels and Lange will be “transitioning out of their roles later this year.”
Trulia said it anticipates that the reorganization will result in savings of $4-6 million for the remainder of 2014. “The company expects to reinvest these anticipated cost savings in the company’s operations, primarily in engineering and product development,” the company’s SEC filing said. “Trulia reiterates its previously stated full year 2014 revenue outlook of $250 to $253 million, and full year 2014 adjusted EBITDA outlook of $18 to $22 million.”