Internet consultancy Razorfish yesterday announced around 400 job losses in its offices around the world, blaming a slowdown in revenues following the decline in dotcom fortunes.
Many of the staff facing the axe are in the company’s accounting, information and human resources departments, which are being consolidated.
The cuts, which represent around 22% of Razorfish’s 1,800 staff, follow the laying off of 200 workers last October and a profits warning for the fourth quarter [WAMN: 13-Dec-00]. The hitherto profitable company is expected to announce a Q4 loss on Thursday.
Insiders predict that the layoffs will save $70 million. Commented ceo Jeff Dachis: “[Razorfish has] initiated several important changes that will allow us to better serve our clients, increase our revenues and quickly return us to the profitability that has defined our business for over five years.”
In addition to the job losses, Razorfish also announced it would restructure to focus on clients in the media, financial services, healthcare, manufacturing and entertainment sectors.
News source: New York Times