Less than two weeks after President and Chief Operations Officer Tom Detmer
stepped down from his posts at 24/7 Media, the online ad network Thursday said
it would trim 100 staffers and close some offices.
The goal, of course, is to streamline closer to the path to profitability, a
road that has become increasingly narrow for companies, including Yahoo! and
24/7 Media spokesperson Mitchell Simmons told InternetNews.com the job cuts,
which will save the company $10 million in annual costs, were across the
board and would not reveal which offices would be shuttered or downsized.
The tightening has left the firm with about 850 employees.
The company, which fuses advertising and technology to offer businesses ad
serving, promotions and e-mail list management, among other things, also
said Tony Plesner, formerly senior vice president of strategic planning,
will helm the COO position Detmer vacated in March.
“With the appointment of Tony Plesner to the COO position and the
streamlining of the organization, 24/7 Media is positioning itself to
capitalize on the $6 billion online ad market for 2001 and the recovery of
the interactive marketing and advertising industries in general,” said David
J. Moore, chief executive officer of 24/7 Media.
But more restructuring is afoot as additional 24/7 Media veterans have been
named to the following positions: Geoff Judge, senior vice president of
national sales, will be responsible for all U.S. Sales; Michael Rowsom,
general manager of 24/7 Mail, will be responsible for e-mail list management
and brokerage; and Will Tifft, general manager of the 24/7 Network, will be
responsible for promoting Web sites associated with the 24/7 Media Network.
The company is also considering the sale of certain assets to reach
profitability, but did not say which.
In related news, R. Theodore Ammon, the non-executive chairman of the 24/7
Media’s board of directors, has resigned from the board.
Shares of 24/7 Media
actually closed up 2 cents on the
day, at 34 cents. The outfit’s stock had actually treaded 52-week lows of
nearly 19 cents and is down 98 percent from its year-ago level of $21-1/8.
24/7 Media is feeling the same pressure as others in the battered online
advertising market. New York’s DoubleClick Inc. Thursday announced earnings,
and while the company’s loss of 8 cents per share beat the 9-cent estimate
from Thomson Financial/First Call analysts, the firm also stated that it
expected even poorer results in the second quarter.
Santa Clara, Calif.-based Yahoo! Inc.’s earnings
announcement Wednesday was bittersweet at best. While the giant portal
announced a loss of only 2 cents per share, it also axed employees for the
first time due to the lagging economy. Yahoo! shaved 420 positions, or 12
percent of its work force.