Netcentives to Lay Off 120 Employees
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.
