Angie's List Lays Off 97 Employees
Roughly 5-percent of workforce let go; COO says "business remains sound"
Aug. 22, 2014
(image courtesy of Twitter)
Angie's List is laying off 97 employees, almost five-percent of the company's workforce.
The consumer review firm based in Indianapolis announced the layoffs in a filing with the Securities and Exchange Commission, and they were confirmed in a statement from the company's COO, Mark Howell. “It is extremely difficult to make a business decision that will have an impact on our colleagues and their families," the statement read. "This painful step is part of an overall plan to improve our sales productivity and performance and establish a new performance-based measurement system by which we will evaluate our sales teams."
Angie's List employed around 2,000, the majority of whom are in sales. While the core of its business is still subscriptions from members who can find and review providers of a variety of services, Angie's List has increasingly tried to boost through advertising. the company has never made an annual profit in it's 19-year-history and lost more than $18 million in the second quarter of this year.
Despite those numbers, "Our business remains sound and we are focused on continuing to make progress on our strategy," Howell's statement said. "We expect to continue to add resources to our salesforce over time to support growth in both advertising and e-commerce revenue. This is a challenging time, but we have a strong and dedicated employee base that is committed to our continued success."