No Cuts Planned for 24/7 Media Asia, Engage Asia
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Despite difficulties at their U.S. parent companies, both 24/7 Media Asia and Engage Asia will not be cutting staff, the companies said Friday in separate statements.
"Since acquisition, there are no current plans to lay-off staff," said Ross Hughes, marketing manager of Engage Asia/Australia, in a telephone interview. Engage Asia was formed in August when Engage, a CMGI company based in Massachusetts, acquired Space Asia. Hughes added, "Engage is looking at Asia as one of its biggest growth opportunities."
24/7 Media Asia, a joint venture between New York-based 24/7 Media and chinadotcom corporation, said that layoffs in its U.S. unit would not be replicated in Asia. "The cut is a result of redundancies as 24/7 Media, Inc. made some strategic acquisitions earlier, [and has] nothing to do with the business here in Asia," Helen Lee, director of regional marketing, Asia Pacific for 24/7 Media Asia Ltd. told asia.internet.com via e-mail.
24/7 Media Inc. missed its earnings estimates for 3Q2000 Wednesday, and stated it would cut 200 jobs. The same day, Engage announced the resignation of its chief executive officer Paul Schaut along with an earnings warning for the first quarter of its fiscal year 2001. Engage had already terminated 175 positions in September to reduce losses.