Employees at Jupiter Media Metrix and Harris Interactive are the latest casualties of the Internet Economy downturn, as both firms announced Thursday that they will cut staff to help contain costs.
New York City-based Jupiter Media Metrix said it will lay off 156 employees from its 865-person staff. The layoffs are part of overall cost-cutting measures related to a slowing economy and a continued decrease in its dot-com client base, the company said in a statement.
Jupiter announced the staff cuts as part of its quarterly earnings report. The firm reported first-quarter revenues of $29.6 million, up from $10.2 million a year before. However, the company reported a net loss of $54.2 million ($1.53 per share). Jupiter Media Metrix provides companies with Internet-related market research and Web site audience-measurement analysis.
Harris Interactive said it will immediately reduce its full-time workforce by 12 percent, effectively cutting 70 employees. In a statement, the firm blamed the layoffs on slowing revenue growth due to decreased demand for its research. The researcher reported revenue earnings for its fiscal third quarter of $15.8 million, an 11 percent increase from a year earlier. The company reported net losses $5.9 million (17 cents).
Jupiter and Harris aren't the only market researchers that have hit tough times. Gomez, which conducts online customer-service analysis, recently cut 25 percent of its 140-person staff in March. Another provider of Net research – Cyber Dialogue – recently cut seven workers from its 24-person research group.
Another Internet researcher, PC Data, completely shut down operations last month, selling its failed assets to competitors. NPD Intellect bought the firm's computer retail-sales-tracking service, while Net traffic analysis firm NetValue said it would purchase PC Data's online ratings service.
