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Greenfield Online Cuts Workforce
Greenfield Online President and CEO Al Angrisani has announced what he calls a 'major rightsizing initiative', aimed at saving $7m in annual operating costs. The initiative, which involves a loss of 39 jobs and the closing of two offices, follows reports of 'disappointing' financial results for the year to date.
As of today, the company has reduced annual salary and benefits costs by $2.8m, including cutting 39 positions. The company expects to pay around $400,000 in severance payments and related expenses by the end of the year.
Next year, the company plans to close its offices in San Francisco, California and Durham, North Carolina. The Encino, California office will be 'rightsized' or moved to a smaller facility locally. The company is also aiming for a reduction of public company expenses of $1.5m, and plans to cut the cost of goods sold by $1m.
Angrisani says the company will invest 50% of the cost savings into its panel operations, panel development and sales consultancy operation.
'It is absolutely essential that we rightsize,' said Angrisani. 'We have three imperatives: one, eliminate costs that bring little or no value to our customers; two, identify areas that can bring major benefits to customers; and three, invest in the people that can best deliver these benefits.'
He adds that the shake-up 'aligns our cost structure with our near-term revenue outlook in North America', and positions the company 'to move forward aggressively, to begin to strengthen our customer base, grow our revenues, and rebuild shareholder value'.
Before joining Greenfield at the end of September, Angrisani ran an advisory firm for troubled and underperforming companies. Between 2001 and 2004, he was President and COO of Harris Interactive. On his appointment to Greenfield, he stated that his aim was to 'use my experience as a successful turnaround manager to reinvigorate this company'.
The company, which operates in Europe through its Ciao subsidiary, is online at www.greenfield.com.
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