24/7 Media to Lay Off Another 100, Close Offices24/7 Media Inc. will lay off another 100 people and will close some offices in an ongoing effort to restructure its business and achieve profitability.
After the headcount reduction, the New York-based firm will have about 850 employees. The restructuring, announced Friday, is expected to save the ad serving company about $10 million annually. The company laid off 200 employees in December and fired another 100 employees in early January.
24/7 Media also said it would close some offices but would not specify which ones would be shuttered.
In addition, the company reportedly is in talks to sell its Sabela unit. The unit, which forms the backbone of its Connect for Advertisers and Publishers ad serving platform, is one of two platforms 24/7 Media operates. The company had hoped to combine the two ad serving platforms, but it has scuttled those plans because of its financial troubles.
If the company does sell the Sabela unit, it would be left with only an ASP-based ad serving service. Its competitors, such as DoubleClick Inc., offer both software-based and ASP-based services.
24/7 Media purchased Sabela in January 2000 for about $75 million in stock. It had hoped to integrate Sabela's technology into its own ad serving platform to compete better with DoubleClick.
The company also plans to close its AwardTrack online promotions subsidiary.