Luminant Announces Layoffs, Reorganizes

With a sagging valuation and dwindling cash reserves, i-shop Luminant this
week said it has launched a turnaround plan to return to “sequential growth
and profitability,” according to a company statement.


Chief executive officer Jim Corey and an executive-level task force
developed the 100-day plan for the Dallas-based firm. The plan entails
“immediate” expense reductions and organizational changes, according to the
company.


One of these provisions includes a headcount reduction of about 7 percent,
or about 75 employees — slimming the firm down to about 950.


“We’re moving swiftly and decisively to find ways to take cost out of our
operations without impacting client performance,” said Corey, who took the
top post in late September after the firm announced the resignation of
Guillermo Marmol to pursue unspecified independent business ventures.

That resignation coincided with the company’s announcement that it would
post a loss instead of an expected profit due to the ad spending slowdown.


Luminant has been in market trouble for several weeks,
following a slow sell-off that began in January. In late September, the
firm’s stock price hit a low of $1.50 after its earnings warning and
Marmol’s resignation. The company has been trading around the $2 mark
since.


With less than $9 million in cash, the company is also feeling a major cash
crunch.


Luminant said internal procedures and policies would be revamped and
operating budgets combined to reduce expenses, though it did not disclose
specifics.


“Our mission is to make sure every aspect of the company is profitable,”
Corey said.


The company’s delivery and business development units also will be
restructured.


“These moves are important organizational shifts for our company,” said
Corey. “Placing delivery under national leadership will ensure that we apply
resources with maximum effectiveness. We can improve utilization and further
tailor our staffing against projects.”


“In business development, the new national leadership structure will allow
us to improve coordination in prospecting efforts,” he added. “We also will
be able to provide higher levels of support in proposal development.”

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