New York-based internet consultancy Razorfish, epitomizing the cycle of the online advertising supernova, continues to suffer a negative cashflow resulting in a Q2 net loss of $3.7 million (or four cents a share) – albeit an improvement on the same period last year when it posted a deficit of $7.3m (8 cents a share).
The troubled shop yesterday reported a 33% drop in second quarter revenues alongside a $70 million charge relating to the closure of two European offices in Helsinki and Milan, plus six hundred redundancies across the board.
Razorfish also announced the acquisition of ten new bluechip clients which, curiously, it omitted to name. The company’s current payroll (as at the start of August) stands at 670 staff, of whom five hundred and ten are billable consultants.
But, admits ceo Jean-Philippe Maheu, further layoffs cannot be ruled out: “I don't expect any headcount reduction of the size so far, but I would definitely say that, here and there, we would manage our business tightly.”
News source: Financial Times