MIVA Cuts Staff to Help Bottom Line
Online ad network MIVA has announced a restructuring plan that will reduce its work force by 20% in the hope of regaining profitability.
The labor reductions, which amount to about 80 employees, should occur in both the U.S. and Europe by the end of May 2007 and should allow the company to save about $10 million in operating costs, according to a statement issue Friday.
MIVA operates a pay-per-click ad network in North America, the U.K., France, Germany, Italy and Spain, and provides e-commerce and search engine optimization services and e-mail marketing. The company has not yet provided Q4 2006 or yearly financial results and said it expects to do so in March.
MIVA reported a net loss of $4.6 million in Q3 2006 and a net loss of $73 million in Q2.
In a statement, MIVA CEO Peter Corrao said the restructuring “is fundamental to achieving our turnaround goal for stabilizing cash and returning to positive operating margins.”
