Acxiom Cuts Work Force 7% After Earnings Warning

Share this content:
Database marketing company Acxiom Corp. yesterday cut about 400 jobs, or 7 percent of its workforce, after reporting that it expects revenue and earnings for the first quarter of fiscal 2002 to be below expectations.


The action follows a 5 percent pay cut imposed in April on employees earning more than $25,000 annually and a $140,000 pay cut for the company leader.


Acxiom, Little Rock, AR, said it expects revenue for the quarter ending June 30 to be about $205 million, resulting in an operating loss of $3 million to $6 million. The company also expects to take $80 million to $90 million in primarily noncash write-offs for a restructuring of operations. The cash portion of the write-off is expected to be about $9 million.


"Despite strong competitive viability of our products and services in the marketplace, good company fundamentals and previous cost-reduction programs, Acxiom's business performance continues to be significantly impacted by the severe economic downturn," company leader Charles D. Morgan said in a statement. "Although our customer base represents some of the leading companies in the world, these same companies are aggressively managing their costs and deferring projects and large purchases."


Morgan said the action is expected to reduce expenses by an additional $17 million to $20 million per quarter beginning in the second quarter.


In April, Acxiom told employees that the pay cuts were implemented in an effort to trim costs and prevent massive job cuts.


"We wanted to maintain the motivation and excitement about our business at the same time we were cutting expenses," Morgan said in April, when he took a 20 percent pay reduction.


The company tried to offset the pay cuts with a stock option plan, under which the company gave affected workers the chance to buy shares that the company would match one-for-one.


close

Next Article in Data/Analytics

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above