Netcentives to Lay Off 120 Employees

Share this article:
Loyalty and direct marketing services provider Netcentives Inc. will slash 120 of its 500 jobs as part of a $40 million cost-cutting effort for 2001, the company said yesterday.


In addition to layoffs, the San Francisco company's cutbacks include a reduction in contract labor, travel and capital expenditures.


Netcentives expects 2001 revenue to fall between $65 million and $70 million, which would be 55 percent more than last year but still below original expectations.


The year-end loss per share is now expected to be between 90 cents and 95 cents. Analysts predicted a loss of $1.63 per share.


The company also said Eric Larsen will replace West Shell III as CEO. Shell will remain as chairman. Larsen was named president in December.


"The Netcentives leadership team is being very aggressive in aligning our expense structure with growth expectations. Our cost-cutting initiatives are imperative in today's market environment," Larsen said.


Share this article:
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Is the Next Mobile Already at Hand?

Is the Next Mobile Already at Hand?

Researchers quibble about just how big the Internet of Things is going to be, but a new report says it's going to be huge and that marketers need to pay ...

Sony Brings Data to Outdoor Advertising

Sony Brings Data to Outdoor Advertising

Norwegian moviegoers got front-row seats when Sony took dynamic digital ads off the Web and into theaters.

Ramp Introduces Video Platform for Marketers

Ramp Introduces Video Platform for Marketers

The cloud-based platform syncs with marketing automation and capitalizes on user behavior to extend view times.