CMGI's yesmail Sends Home 24 Workers
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Citing the soft market conditions in the Internet advertising sector, Chicago-based e-mail marketer yesmail.com has implemented a cost-cutting initiative -- which includes the laying off of 24 workers, or 14 percent of the company's workforce.
Yesmail president Dave Menzel indicated the cuts were across all areas of the business, with the primary impact being on the direct sales organization. The layoffs were "in order to ensure that our sales force is properly aligned with the current market condition," he said.
Despite the recent softness, Menzel reiterated what many industry analysts continue to predict: long-term growth in the Internet advertising sector.
"We are confident that permission e-mail marketing will compose a significant portion of this growth, and yesmail.com will remain a leader in this important segment of the direct marketing industry," Menzel said.
Yesmail.com is a majority-owned operating company of CMGI, Inc., a global Internet operating and development company. The news comes as CMGI and several of its marketing companies are struggling to retool their businesses in the face of weakening revenues and investor displeasure.
Last week, CMGI-owned ad network Engage announced that it would lay off half of its employees in an effort to restructure and attain profitability.