MIVA Reducing Work Force by 20%

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Online advertising network MIVA has announced that it will be restructuring its business to reduce operating costs and save about $10 million.

“This next course-correcting step, while difficult, is fundamental to achieving our turnaround goal for stabilizing cash and returning to positive operating margins,” said CEO Peter Corrao in a statement. The company expects to cut its workforce in the US and Europe by about 20% by the end of May 2007. MIVA has its headquarters in Fort Meyers, Florida and has offices in New York, and several in Europe. MIVA expects the initial cost of restructuring to reach about $4 million.

“This step complements our strategy for increasing the overall mix of MIVA-owned primary traffic, which we believe over time, will facilitate higher gross margin revenue on top of a more efficient cost base,” added Corrao.

MIVA’s pay-per-click network covers North America, the UK, France, Italy, Germany, and Spain. It also provides e-commerce, email marketing and SEO services. MIVA has not yet released its fourth-quarter earnings for 2006. According to a press release, the company will release those numbers in March 2007.

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