Qfactor Cuts Workforce by 30 Percent
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Online media buyer Qfactor said Tuesday that it plans to cut its workforce in an effort to capitalize on new technologies and to streamline its operations.
According to the company, it will reduce headcount by 22, or about 30 percent, because of operational efficiencies brought about by advancements in its technology, and in response to the ad industry's current woes.
Spokespeople from the five-year-old Bethesda, Md. firm said improvements in its ad measurement tools and databases had made some of the eliminated positions obsolete.
"We have had in the last year a tremendous amount of improvement in our ability to track and measure the performance of media," said William Graham Champion Mitchell, the company's non-executive chairman. "In part that's because software has been improved and in part we've learned how to work with the data better. The bottom line is we can do a better job of measuring and managing our clients' campaigns with fewer people, because of the improvements in our efficiencies and our metrics."
The company said a part of its cuts includes the closing of its New York and San Francisco offices, which together held nine employees.
"Today's layoffs are reflective both of those gained operational efficiencies, and our commitment to continue our record of twenty consecutive quarters of profitability," said Qfactor president and chief executive Brayton Johnson. "We recognize a slowing of growth in the online advertising industry and these increased efficiencies and today's reorganization are designed to continue our profitability. This is an essential component of our commitment to continue delivering the most successful and effective online advertising campaign management to our clients."
As an online-only media planner and buyer, Qfactor is at the center of the online advertising maelstrom. After two quarters of slacking revenue growth, many companies in the online marketing and advertising industry have missed earnings, announced extensive reorganizations or gone out of business entirely. With many experts predicting two more quarters before online ad spending rebounds, companies are faced with the task of figuring out how best to ride out the industry's troubles.
"We must anticipate and embrace change," Johnson said. "We will continue to manage our company to insure that our operation remains more efficient and effective than our competitors. Despite the barrage of negative publicity about the interactive advertising industry, Qfactor is taking actions to insure it will not only survive but continue to prosper."