The soft online ad market has prompted yet another round of layoffs, this time at Phase2Media, the New York-based online ad sales firm.
Phase2Media said it plans to let go about 30 people, or about 30 percent of its payroll. The decision comes days after the company canceled plans for a $57.5 million IPO, citing market conditions. It had planned to use the proceeds to expand its sales force and for general corporate purposes, including working capital.
"I am very proud of the talented team we've assembled at Phase2Media and deeply regret that we had to make staff cuts," Chairman and CEO Richy Glassberg said in a written statement. "However, we had no choice but to realign our operation to reflect the current condition of the marketplace."
The New York City-based company also said it has merged its sales and marketing force into one core team. Additionally, it will eliminate its telephone sales team that focuses on dot-com business and will cut staff in "related administrative and support areas."