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First Ever Quarterly Loss Follows Razorfish Layoffs

News, 09 February 2001

Ailing internet consultancy Razorfish yesterday posted its first quarterly loss since opening its doors for business five years ago.

The news comes in the same week that the New York-headquartered agency group laid-off 22% of its 1,800 staff [WAMN: 6-Feb-01], the second culling of employees inside three months.

Hailed in January by Forbes magazine as the fastest growing company over a span of five years, Razorfish reported a pro forma net loss of $19.8 million (20 cents a share) for the quarter ended December 31. In the same period in 1999, the shop achieved a profit of $5.8m (6 cents).

Said chief executive officer Jeff Dachis: “We have continued to build and align our business to face the challenges of a year filled with rapid change. While we reflect on our first unprofitable quarter, we continue to execute our strategy to develop and deliver digital solutions.”

In after-hours market trading last night, Razorfish stock fell 19 cents to $1.69.

News source: Financial Times