New York-based Agency.com's stock dropped about 23 percent to close the day at $3, the day after it announced 190 employees would be laid off and announced plans to close its Vail, Colo., office. The move comes as the Internet shop issued a warning on lower than expected earnings. It said it expects sales for the fourth quarter to total $56 million to $58 million, compared with $31.3 million in the same period a year earlier. Agency.com said it will take a charge in the fourth quarter of 2000 of approximately $11 million to $14 million. With the staff cuts and closure of the Vail office, it expects to save the company between $12 million and $16 million, giving it a cash reserve on Dec. 31 of about $65 million to $70 million.
Copyright December 2000, Crain Communications Inc.