Due to the current financial crisis, various companies are taking steps (they think necessary) to cope with the issue. The most common step taken is firing employees. Following the trend, AdBrite, the internet ad marketplace has laid off 40% of its employees in order to keep the company profitable. Two executives, Paul Levine, Vice President marketing and Bob Feller, Vice President finance are also included in the list.
Though AdBrite’s CEO, Iggy Fanlo, argues that the company’s performance can’t be judged in the light of current step taken. In an interview, he said:
The layoffs are not a statement about performance, but about AdBrite controlling its own destiny and getting profitable immediately.
Moreover he added:
And understanding the multi-decade phenomenon that we’ve found ourselves in economically, we felt there weren’t other options.
When an economic environment isn’t strong, it’s more prudent to tailor investment back, make choices more wisely, and self-fund.
The company thinks that being profitable is the key to move forward. According to the CEO, the major focus of the company will be on a performance based CPM model rather than the earlier brand base service. By moving to the CPM model, Fanlo thinks that the company will generate more revenue and will remain profitable.
Right now the company is providing 3.84 billion ad impressions on more than 83,850 websites every day.