CoolSavings.com Inc., the targeted advertising delivery firm, has cut 67 positions, or 24% of its staff, in an effort to return to profitability during the second half of 2001. The move follows its announcement a week ago that during the year just ended it took a $39.3 million loss, compared with a $16.9 million loss a year earlier.
The Chicago-based company also said that it would reduce marketing, general and administrative and technology expenses as part of an austerity program. CoolSavings expects operating costs for the year to amount to $40-$45 million, down from a previous forecast of $57-$60 million.
“This reduction in work force was an extremely difficult decision to make, but a smart and disciplined one in response to fundamental changes in the market environment, particularly for advertising and marketing-related services,” said Steven M. Golden, CoolSavings’ chairman and chief executive officer in a statement.
Golden continued “We do not expect these cuts to affect our ability to continue our growth during 2001 or to meet our revised expectations for the year.”
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