Valassis Communications Inc. said it would be cutting about 3% of its US work force, coming on the heels of a third-quarter loss of $5.2 million.
In its quarterly financial report filed with the U.S. Securities and Exchange commission, the company said the layoffs would likely take place in the fourth quarter of 2008.Valassis has approximately 5,000 employees domestically.
The company reported quarterly revenue of $563.7 million, down 7.2% from $607.2 million for the prior year quarter, “due primarily to the challenging global macroeconomic environment and its impact on revenue across all of our business segments,” according to a company statement.
Valassis reported a net loss of $5.2 million, or 11 cents per share, for the third quarter compared to net earnings of $16.4 million, or 34 cents per share, in the prior year quarter.
“The unprecedented economic downturn had a significant effect on our third-quarter results,” said Alan F. Schultz, Valassis chairman, president and CEO, in a statement. “In response, we have implemented a plan to best position ourselves in this uncertain environment, which we anticipate will continue to adversely affect our clients’ marketing budgets.”
Valassis also was removed from the Standard & Poors MidCap 400 index at the close of trading Monday.
