Modem Media Continues Staff Reduction

Share this content:
Modem Media Inc., one of the pioneers among interactive agencies, is continuing to eliminate staff as the industry consolidates at a rapid rate.


The Norwalk, CT, shop reportedly sacked 40 workers, or 4.8 percent of its staff.


Only last month, Modem Media reported first-quarter revenue of $33.4 million, up 17 percent from the year-ago period, though down 5 percent from fourth-quarter 2000 revenue of $35.2 million.


The agency did not immediately comment on the layoffs.


These layoffs come on the heels of massive job cuts announced earlier this month at Agency.com. The New York interactive shop will lay off 350 workers, nearly one-fourth of its global work force.


As part of the Agency.com announcement, company founders Kyle Shannon and Chan Suh will sell their shares in the firm to a holding company formed last month by Omnicom Group Inc., New York, and Pegasus Partners II, a Greenwich, CT, investment company.


Shannon and Suh will remain in their positions as chief people officer and chairman/CEO, respectively.


Omnicom is an investor in Agency.com. The new holding company, called Seneca Investments, controls shares in interactive agencies such as Razorfish, Organic and Agency.com. Seneca's interest in Agency.com is now 66 percent, up from 45 percent.


close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

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