To All US Jupiter Media Metrix Staff,
We are writing to share some difficult news about changes at Jupiter Media Metrix that we are announcing today in conjunction with our Company's first quarter financial results. We have made positive progress over the quarter, including fully integrating our sales and service organization, launching our new product architecture and adding many new key clients. Revenues for the quarter, however, were below plan. This occurred primarily because of challenges with renewals, specifically within the dot-com segment of the market, and it occurred across all of our lines of business.
The increasingly weak economy, which we expect will continue to affect our revenues for a while longer, requires us to implement overall cost-cutting measures to ensure that our expense structure aligns with a more conservative revenue plan. As part of these measures, we have been forced to make the extremely difficult decision to reduce our staff by approximately 18% over the coming weeks. Before making this very tough decision, we made significant efforts to decrease spending in other areas of the organization. While we were able to substantially cut costs, the continuing difficult market conditions forced us to be even more aggressive.
While this is personally very upsetting for all of us, we are convinced that it is the right decision for the long-term success of Jupiter Media Metrix. We are confident that this decision will help us better streamline the business around our core strengths, better position the company for long-term opportunities and ultimately will lead Jupiter Media Metrix to profitability.
Over the next few days, managers will be communicating with U.S. employees about these changes, and we are committed to treating all employees with respect and kindness through this challenging time. On Tuesday, May 1st 12:00 noon Eastern time, we will hold an employee call to discuss our plans for the future.
Tod, Gene, Kurt, Mary Ann and Jean
[Tod Johnson, chairman-CEO; Gene DeRose: vice chairman, president; Kurt Abrahamson: group president, director; Mary Ann Packo: group president; Jean Robinson: chief financial officer, chief administrative officer]
Copyright April 2001, Crain Communications Inc.