Comscore said that its plan to reorganize its technology, product and sales organization will cost the struggling measurement company $1.5 million to $2.5 million as it terminates 8% of its workforce.
In a filing with the Securities and Exchange Commission Wednesday, Comscore said that the costs were exist related costs consisting primarily of one-time termination benefits.
The company said that the reduction in force plan is currently being implemented and that the majority of employees losing their jobs will be leaving the company in the third quarter.
Comscore said the reorganization is designed to focus the company on core areas of growth and that the reduction in staff will decrease annualized operating costs by $20 million.
Comscore has been struggling since accounting issues were discovered three years ago. The company had to undergo a costly and time-consuming re-audit of its financial statements and since then it has gone through several CEOs, lost other key employees, lost millions of dollars and new product launches were delayed.
The company launched a strategic review earlier this month, The company noted its plunging stock price, which had been as high as $20 a share in September and closed at $1.74 on Tuesday.
During the second quarter, Comscore reported that its net loss grew to $279.5 million from $56 million the year before. Revenue was down 4,4% to $96.9 million.
On Aug. 12, Comscore director Paul Reilly said he was resigning from the board. Reilly said in an SEC document that he “does not believe the company’s operating strategy is progressing fast enough, specifically in innovation and product development.”
Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.
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