Infogroup, the Omaha-based firm taken private a year ago today, is preparing for layoffs as the company continues to shift from a conglomeration of database and marketing entities to a streamlined full-service marketing company.
Company officials on Wednesday said that staff reductions will be made companywide in areas that are not part of Infogroup’s long-term plan. Souces close to the situation said 140 employees will be let go today companywide.
Clare Hart, Infogroup’s chief executive, confirmed the layoffs but declined to comment on the number of employees affected. It’s unknown exactly how many of those will come from Infogroup’s Omaha offices, which employ about 1,200. The company employs a total of about 3,400, so the layoffs translate to about 4 percent of its total workforce.
“Nobody likes to do layoffs,” Hart said. “But you also can't pretend that if your business structure changes ... you don't have to redefine the organizational structure.
“We had more employees than we needed to support the customer base.”
The staff reductions, Hart said, won't negatively affect Infogroup's business. Instead, the goal is to solidify the company's strategy by eliminating redundancies and overlapping positions.
The move is a reflection of Infogroup moving away from the holding company model that existed before it was acquired by the New York private equity firm CCMP Capital 12 months ago.
A year ago, Infogroup had 18 separate business units, some of which competed with one another, Hart said. Now it has five.
Infogroup, which also has major operations in Pearl River, N.J., and Portland, Ore., is in the process of consolidating its Omaha operations into its renovated Papillion facility. The move was expected to be complete by July, but there have been some delays, Hart said.
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