Autobytel has cut 75 jobs out of a total of 225 staff members under a cost-cutting plan it began last year. The jobs were mainly in non-core parts of IT and accounting. All told, the company said it expects to save about $10 million each year as the result of the cuts – which represent about 35 percent of its work force – as well as the elimination of other expenses.

As a result of the job cuts, Autobytel said it expects to record severance and other employee-related charges totaling about $2.2 million in the third and fourth quarters.

Company officials said the moves were needed to help the company improve cash flow and reach profitability as it deals with a tough economy. Nevertheless, the company is near break even and hopes to be profitable in 2009.

The company, clearly in a tight spot, has also retained RBC Capital Markets Corp. as a financial adviser to help it explore strategic alternatives including the possible sale of the company.

The news isn’t all bad. Autobytel has a decent war chest – $30 million in cash – and revenues from the 3 million leads it sells each year are still good. The site brings in 2 million unique visitors a month. MyRide, the company’s (not so) new car portal is generating about 49 percent of Autobytel’s page views. The company earned $19 million in 2Q 2008, down from $21.6 million in 2Q 2007