Contributed by: ElyseRomano on Wednesday, September 24 2014 @ 07:04 am
Last modified on
Breakups are never easy, especially when it means losing your job. Spark Networks, the company behind dating sites like ChristianMingle.com and JDate.com, has announced that it's cut its workforce and has made substantial progress in expense reduction initiatives. The measures are expected to save the company $4.5 million to $5 million a year.
Although Spark did not disclose exactly how many jobs were cut, the company had previously reported that it had 201 full-time equivalent employees as of December 31. The company expects to incur pre-tax cash charges of approximately $1.3mm for severance benefits and other related expenses.
The cuts come at an interesting time for Spark Networks. Lately, its sites have seen an increasing number of their customers turn to competing services. The company has also undergone a number of recent changes in its corporate structure. David Hughes, formerly chief executive at a digital marketing firm in West Los Angeles, resigned as a director after joining Spark Networks’ board just six months prior. He will be replaced by Jonathan R. Mather, a former Netgear chief financial officer.
Hughes’ exit comes only two months after a very public ousting of four of Spark's six directors (including Chief Executive Greg Liberman). The hope is that a fresh crop of directors will be better able to help the company rise above the competition in difficult times.
Free dating sites like OkCupid and mobile apps like Tinder are dominating the market and have made life difficult for services like Christian Mingle and JDate. Spark Networks experienced a 10% drop in revenue during the second quarter, to $15.8 million. The company reported a total of $29 million in net losses over the last three years.
Looking to future, Spark Networks plans to head back to basics. It's putting its focus on three things in hopes of boosting subscriber count and revenue:
"Much has been accomplished over the last 30-days to refocus the business on its core properties and to drive operational efficiencies,” said Executive Chairman Michael McConnell in a statement[*1] .
“Moving forward, I believe the opportunity to profitably grow our business is significant and we are prepared to execute on strategic growth initiatives that meet our return on capital hurdles. Further, the team is operating with a sense of urgency and commitment to drive improvements in all areas of the business. Importantly, I am confident in the resilience and resonance of our brands within our targeted communities."