POWERADZ.com CUTS STAFF BY 30%

By: Staff Reports

Founder Godgart Resigns As Chairman


PowerAdz.com of Troy, N.Y., laid off 30% of its staff in the
interest of being “cash-flow positive” by mid-2001.

The company reports that the company achieved over 100% revenue
growth in 2000. However, 33 full-time employees and four part-
time staffers were given their walking papers Thursday, leaving
approximately 85 employees still on staff.

The layoffs were evenly spread throughout the departments, said
Mark Chudzicki, president and CEO of PowerAdz. But there were
more layoffs in production and launch personnel who went into
newspaper markets to launch papers new to the PowerAdz network.

Even with 60 newspapers signing on in the last two months,
Chudzicki said there will not be a slowdown in launching the new
affiliates. “Simple fact is that we were overstaffed in that
department,” Chudzicki said. “The in-house production team will
continue to set up these newspapers.”

The advertising department was not reduced despite national
advertising sales being weaker than forecasted, Chudzicki said.
But the company will focus more on affiliate newspapers using the
company’s products for local Internet advertising. Kurt Lozier,
vice president of product management, will oversee this effort.

“We’re trying to get our staffing level to match our revenue
flow,” Chudzicki said. Well aware of the current dot-com
environment, he summed up the company’s position: “PowerAdz.com
is a strong company. We’re not like other dot-coms. We do have a
revenue model; we’re not searching for one. And we do offer our
employees severance packages, we do not lock the door on
employees.”

But Bob Godgart, founder, chairman, and CIO, has left his day-to-
day role with the company. He recently announced his departure in
order to fund and mentor start-ups and entrepreneurs through the
company Exponential Business Development where he has been a
partner since 1994. He remains a member of PowerAdz.com’s board
of directors.

PowerAdz.com reports that it works with more than 1,500
newspapers online.



Related story:

POWERADZ MOVES BEYOND CLASSIFIEDS TO SYNDICATING (12/29/00)



Copyright 2001, Editor & Publisher.

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