Women.com Cuts Workforce
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Women.com has reduced its workforce by 25 percent.
About 85 jobs were eliminated Wednesday in an effort to reduce expenses, align the company's revenue with expenses and respond to current market conditions, according to Marleen McDaniel, chairman and CEO of women.com.
"The streamlining of our business operations, among the toughest decisions made by any company, reflects the need for women.com to remain nimble in a fluctuating Internet community," she said. "We are very confident in the quality of our product, the future of our business and we will focus our sales groups on the company's core competitive advantage: large, established accounts."
The actions taken Wednesday are in line with announcements made last month upon release of the company's third-quarter results. The company's revenues during the third quarter were adversely impacted by a $1.7 million revenue allowance charge for dotcom advertising business booked during the third quarter that may prove to be uncollectable.
The problems in the dotcom advertising market, coupled with the seasonality of advertising, contributed to the decline in advertising revenue from the second quarter of 2000, according to McDaniel.
Further, total revenue for the third quarter was up 22 percent to $8.8 million over the third quarter of 1999, but declined from $12.3 million in the second quarter of 2000. Pro forma net loss for the quarter was $18.5 million, or $0.39 per diluted share. This compared to a pro forma net loss of $10.3 million, or $0.34 per diluted share for the same period a year ago.
Including stock based compensation, goodwill amortization, and loss on investment, reported net loss for the third quarter was $29.9 million or $0.64 per diluted share compared to a net loss of $17.0 million or $0.56 per diluted share for the comparable quarter last year.
The goal is to move into 2001 as a strong, more flexible company, said McDaniel. "We are positioned to leverage the positive fundamentals of our business and our equity partners to drive growth and move us toward our profitability targets," she said.
The workforce reduction was the first since the company launched in 1992 and affected positions across the company.
The site -- which focuses on programming, community, shopping and personalized services -- is listed among the 50 largest destinations on the Internet, attracting more than 7.5 million visitors to its network each month.