By @NY Staff
Anticipating ad-dependent revenues to be flat or down in the fourth quarter this year, New York-based women’s network iVillage Inc. announced it would cut 18 percent of its workforce, a move that affects 50 employees.
The six-year-old media company, which runs the iVillage.com, Women.com and Business Women’s Network (BWN) destinations, said the layoffs were part of plans to hunker down and turn a pre-tax profit in the fourth quarter this year.
“Based on current market conditions, (we) anticipate 2002 revenues to be flat to up slightly over 2001 revenues. As a result of a continued downturn in ad spending across the industry and disruptive conditions in the overall economy, iVillage expects fourth quarter 2001 revenues to be flat to down 10% from third quarter 2001 revenues,” the company said.
iVillage spokesman Carl Fischer told atNewYork the staff cuts were evenly distributed in every department within the company and was linked to the continued integration of Women.com, the California-based portal it purchased earlier this year.
Prior to the Women.com merger, iVillage implemented a round of layoffs, which was aimed at eliminating overlap at Women.com offices in San Mateo, CA and New York.
In the most recent quarter, iVillage said its position as the dominant vertical portal for women helped it weather the storm in the online ad sector.
At the end of the quarter, iVillage had approximately $43.7 million in cash and cash equivalents on its balance sheet. The company has no debt.
