Netcentives Cuts Workforce
The news continues the firm's efforts at restructuring to meet the needs of a changing market.Incentive marketer Netcentives (NASDAQ:NCNT) continued its efforts at restructuring Thursday, laying off 28 percent of its 180-person workforce.
Although the firm wasn't specific about what positions would be cut, it said the jobs affected were not in the San Francisco-based company's e-mail marketing group. That group was put on the block earlier this year. U.S. Bancorp Piper Jaffray is handling the sale of the unit, which formerly had been known as Post Communications, and which Netcentives had acquired a year ago for about $333 million in stock.
On Wednesday, the company said it had received a delisting notice from Nasdaq, on the grounds that its stock price remained too long below the exchange's $1 minimum. When trading reopens -- on Friday at the earliest -- the company's stock will be removed from the National Market, since officers said they would not file for an appeal.
The news isn't the first effort by the company -- which provides tools for incentivized customer and employee loyalty programs -- to adjust to changing conditions in the market. In late July and early August, the company announced changes to its upper management and unveiled a number of other restructuring efforts designed to better position Netcentives' offerings, as the online marketing sector continued to suffer from cuts in client budgets.