Razorfish lays off 400 worldwide staff

Internet design and consultancy firm Razorfish is cutting 400 staff from its offices in the US, UK and Germany in a bid to save $70m.

Internet design and consultancy firm Razorfish is cutting 400 staff from its offices in the US, UK and Germany in a bid to save $70m.

In the second round of job cuts in the past four months, Razorfish will have reduced its 1,800 workforce by 22% and restructure its operations to concentrate on clients in financial services, media, entertainment and healthcare.

Jobs are likely to go in its accounting, human resources and IT services. Expense accounts will be reined in and new incentive and compensation plans will be rolled out at all levels.

Razorfish chief executive Jeff Dachis said: "We have initiated several important changes that will allow us to better serve our clients, increase revenues and return to the profitability which has defined our business for over five years."

Although it has achieved profitability, Razorfish, in which Omnicom has a 13% stake, has been feeling the same pressure as other internet companies since the dotcom decline began late last year. Many of its clients are e-commerce firms which have either closed or forced to make cutbacks to cope with the climate.

The cuts come even though Dachis reassured staff in December that the job losses made in October would be the only ones necessary. He told investors that the company had consistent vision, strong brand, excellent staff and an expanding global footprint.

Razorfish reported profits of $9.1m on revenues of $217m for the nine months ending in September 2000, compared with profits of $8.5m on revenues of $117m in the first nine months of 1999.



Topics

Become a member of Campaign from just £45 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk ,plus get exclusive discounts to Campaign events

Become a member

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Partner content

Share

1 Why creative people have lost their way

What better way to kick off the inaugural issue of Campaign's monthly print offering than with another think piece on the current failings of our industry, written by an embittered, pretentious creative who misses "the way things used to be"...

Share

1 Job description: Digital marketing executive

Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).