Memberworks Lays Off 225 Employees

Share this content:
Citing depressed response rates because of economic conditions, membership club marketing company MemberWorks cut 225 employees yesterday and reduced its revenue projections for the fiscal year 2002 by about $100 million.

The layoffs, representing a 15 percent reduction in MemberWorks' staff, were expected to save the company $9 million annually. MemberWorks also said it would close its United Kingdom operation, reduce the capacity of its call centers and downsize infrastructure, incurring a one-time restructuring charge of $7 million in the quarter ending Dec. 31.

Cost-reduction efforts were being made in light of "increasing uncertainty in both the U.S. and abroad," the company said. President/CEO Gary Johnson said the structural changes to the company would give MemberWorks greater flexibility to adjust to the changing market.

MemberWorks, which will end its current fiscal year 2002 on June 30, said its projected revenues for fiscal 2002 have been reduced from earlier forecasts of $521 million down to between $420 million and $430 million. Revenues for fiscal 2002 are expected to be 3 percent lower than the previous fiscal year.

MemberWorks said it would report its financial results from the quarter that ended Sept. 30 on Oct. 25. Revenues for the quarter are expected to be $118 million to $120 million.

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

Relive the 2017 Marketing Hall of Femme

Click the image above