Engage Layoffs to Be "Minimal" in Asia

Engage’s plans to lay off 550 employees will have “minimal” effect on the company’s Asia operations, an Engage spokesperson in Asia told asia.internet.com Friday.

“The announcement in the USA will have little affect on the Asian operations. It is largely about dealing with the legacy of the previous acquisitions,” said Ross Hughes, marketing manager, Engage Asia/Australia. “The issue is one of wisely dealing with the redundancies and duplication of roles, and creating a sound and efficient international corporate structure, which is exactly what is being undertaken,” he said.

Hughes added that “few if any” members of the company’s staff in Asia would be laid off.

The Andover, Mass., company, owned by beleaguered Internet holding company CMGI, announced that it will cut 550 jobs, about half of its workforce, over the next few months through layoffs and attrition, boston.internet.com reported Thursday.

Engage said the restructuring would cost it between $17 million and $20 million in cash charges and an additional $23 million to $25 million in non-cash charges. The costs are expected to be incurred mainly in the next two quarters.

The company said it would save between $120 million and $150 million a year in lower costs, with operating margins also improved.

Nuzzo said in a release, “We believe this major restructuring is necessary to enable the company to position itself for future growth and to significantly reduce costs. We are creating a fully integrated company with internal dynamics that facilitate more effective communication and decision making.”

In September, when the company was led by then-chief executive officer Paul Schaut, Engage fired 175 employees to get down to a staff of 1,175.

Steven Schwankert is managing editor at asia.internet.com. Gavin McCormick is managing editor at boston.internet.com.