Dennis Interactive Lays Off 20

Dennis Interactive, a New York-based i-shop backed by U.K.-based publisher Felix Dennis, says it has received a commitment for an additional $2 million in financing from its owner, but in turn had to layoff 20 employees in its New York office as well as close its six-month-old U.K. office.

Additionally, as part of its restructuring, Dennis Interactive also unveiled today its new logo and the third version of its award-winning corporate Web site, built with Flash 5 and found at

In a statement, DI general manager and co-founder David Cherry said the $2 million is meant to “tide us over the current economic downturn.” Meanwhile, he said, with the ongoing slowdown in demand for interactive services, it was imperative to scale back staff without “impacting our ability to provide award-winning interactive work for our existing clients.”

Cherry said DI will be forming “much closer ties” with the Internet division of Dennis Publishing (U.K.), publisher of Maxim magazine, to work on U.K. projects. That U.K. unit, also called Dennis Interactive, manages 17 magazine-related Web sites for Dennis Publishing.

Eighteen employees in New York and two in the U.K. were told of their layoffs on Thursday. “I deeply regret the loss of each individual employee,” said Cherry. “But the long-term survival of the company has to be the priority.” Founded in 1997 with Mercedes-Benz as its first client, the shop now has 28 people on staff.