Modem Media Cuts 95 Workers
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In a continuation of the torrid hammering of the e-consulting sector, Norwalk, Conn.-based Modem Media cut 10 percent, or 95 staffers from its global 950-member workforce.
The outfit, which sports offices in New York City, San Francisco, Toronto, London, Paris, Munich, Hong Kong and Sao Paulo, will close its Tokyo unit as part of a company-wide restructuring plan. Some members of the Tokyo office will be picked up by its Hong Kong brethren this year.
With these adjustments, Modem Media will likely take a charge of approximately $3 million in the first quarter of 2001 and reduce its ongoing operating expenses by about $5 million in the next year.
Marc Particelli, chief executive officer of Modem Media, said a recent review indicated that tightening the firm's belt would improve its performance.
"The sale of most of our equity position in the CentrPort business in December, combined with the workforce reductions, will reinforce Modem's financial position and prospects," Particelli said.
A possible hint as to the possibilty of realignment was dropped Feb. 27, when the company said it would postopone the revelation of its fourth-quarter and year-end results "pending completion of its regular quarter-end impairment analysis of the goodwill recorded in connection with its February 2000 acquisition of Vivid Holdings Inc."
Modem Media said it expects to announce its year-end results following the completion of its impairment analysis and will issue a press release with the information on the rescheduled call as soon as it is available.
stock closed down 38 cents Wednesday to $4.38.