Razorfish Founders Step Down as Losses Narrow

04 May 2001

Jeff Dachis and Craig Kanarick, co-founders of former blue-eyed web consultancy Razorfish, yesterday announced their respective resignations as chief executive officer and chief strategic officer. The duo will, however, retain their roles as co-chairmen of the New York-based shop.

Their semi-exit coincides with the posting of Q1 financial results marginally less dire than predicted. Net losses, expected to be in the region of 8 cents a share, were actually 7 cents – or $24.9 million – compared with a net profit of $4.5m, or 7 cents per share in Q1 2000.

Said Dachis: “After much examination and discussion with the board, I am confident that this leadership change is in the best interest of Razorfish.” He is replaced as ceo by former chief operating officer Jean-Philippe Maheu.

Maheu spelled-out his priorities for the consultancy, a bellwether of the web industry during its glory days: “Our primary goal is to manage our return to profitable operations and positive cash flow while successfully serving the expectations of our clients, shareholders and employees.”

Rumours of the resignations yesterday triggered a plunge in Razorfish shares, down by over 24% to $1.22.

News source: Financial Times