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.
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.