Listen up, HR managers, there’s a fresh crop of search employees on the block.
iCrossing commenced a round of layoffs this week. Rumor has it that the new CFO, Michael Jackson, is not driving continued growth, but cutting the fat based on profitability of offices and accounts. As of this morning, 20-30 employees have been cut from the Scottsdale headquarters and the New York office. Atlanta is also rumored to get cut down to 4 people. Some accounts suggest that when all said and done, roughly 60 people will be left in the wake.
The company also recently opened a London office.
So what does all of this mean? While layoffs are no fun for anyone, most firms that go through rapid acquisitions eventually require restructuring. In the case of iCrossing, the acquisition of Spannerworks and Sharp Analytics, as well as the full absorption of NewGate, has grown the ranks to 300 people in less than 5 months.
Insiders report that Agency.com hires brought on by Don Scales have been spared from the cut.
While the firm has publicly stated that it is on a path to IPO, there is speculation that the cuts signal a fast sell, freeing up funds for a new acquisition or simply cleaning up after numerous acquisitions.
Searcharazzi is sure that there are more tales from the ranks. Feel free to post your comments below.
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