Monster to cut 400 jobs to cope with weak economy
NEW YORK (AP) — Job listing company Monster Worldwide Inc. said Thursday it would cut its global workforce by 400 people, or 7 percent, as the weak economy hurts its business.
The cuts, along with other planned moves, are expected to save $100 million per year. They were announced as Monster reported fourth-quarter net income that fell short of analysts' expectations, even as it slashed payroll and marketing costs to cope with a revenue decline.
Its outlook for the current quarter was also well below analysts' expectations and shares plunged $1.83 or 20 percent, to close at $7.15.
Net income in the three months to Dec. 31 came to $10.9 million, or 9 cents per share, from $501,000, or about break-even per share, a year ago.
Excluding items such as restructuring costs, adjusted earnings came to 11 cents per share, a penny shy of the 12 cents expected by analysts polled by FactSet.
Revenue fell 2 percent to $250 million from $255 million, also below the $259 million expected by analysts.
In July, Monster said it was exiting the business of "arbitrage lead generation," in which it purchased leads on potential job applicants from Internet sites and sold them to schools because the business wasn't profitable and due to new regulations.
That business contributed $12 million to revenue in the fourth quarter of 2010. Excluding that portion from the previous year's results, revenue for the final quarter of 2011 would have been up 2 percent, but was still lower than the company anticipated.
The company said it expects first-quarter adjusted earnings of break-even to 4 cents per share. Analysts expected 9 cents per share.
It forecast a bookings decline of 6 to 10 percent, with revenue estimated down 3 to 7 percent. That suggests revenue of $254 million to $243 million, below the $262.5 million expected by analysts.
For all of 2011, Monster reported net income of $54 million, or 54 cents per share, compared with a loss of $32 million, or 27 cents per share, in 2010. Revenue increased 14 percent to $1.04 billion