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.