Modem Media is completing a plan to help it reduce expenses. First the company is laying off what will amount to 10 percent of its workforce. This includes closing its Tokyo, Japan office and transitioning its clients to the company's Hong Kong office. The company expects to take a one-time, pre-tax charge of approximately $3 million in the first quarter of 2001 and reduce its ongoing operating expenses by approximately $5 million in 2001 with these steps.
"Over the last few weeks we completed a comprehensive review of the operating structure of the company and it is clear that these incremental actions will only further strengthen our business," said Marc Particelli, CEO of Modem Media in a statement. "I look forward to the release of our fourth quarter and full year 2000 financial results. At that time, we will be prepared to discuss the financial impact of these reductions along with our 2001 business outlook."