The pace of contraction in the digital services space gathered momentum again Tuesday with Norwalk, Conn.-based Modem Media, Inc.joining the ranks of companies restructuring international operations.
Modem Media, an interactive marketing and services firm, plans to restructure operations in Paris, a move that includes a one-time charge of $2 million in its fourth quarter earnings. The company said the move would save about $1 million in pre-tax savings annually.
The company did not provide details of the restructuring or how many of its 840 employees would be affected. The restructuring, which is scheduled to be completed by the first quarter next year, was necessary to react to existing business conditions.
“The restructuring of our Paris operations is consistent with our continued commitment to manage our global capacity to global business conditions,” CEO Marc Particelli said.
He said existing clients would be supported through the Modem Media offices in Norwalk, CT, San Francisco, Toronto, London, Munich, Hong Kong and Brazil.
It is the second major round of cutbacks at Modem media this year. With business in the struggling dot-com sector slowing, the company also consolidated its New York operations to the headquarters in Connecticut.