Monster stock is taking a beating today, following the company’s acknowledgment it will be laying off workers in its product and technology group.
Joel Cheesman reported Monday that he received a tip from a Monster worker who claims to have seen a multi-page list of about 200 names, including the tipster’s own.
In response, Monster issued a statement that was short on details, but said, in part, “we continue to restructure, reorganize. This means that roles and skill areas that are no longer needed to support the business are restructured,” says the statement from Kathy O’Reilly, senior manager of media relations at the notoriously tight-lipped company.
The announcement contains no direct confirmation of an impending layoff, nor does it provide any numbers or other specifics. It also has not, so far, been distributed on any of the financial or business services that companies typically use for announcements of this sort. Nevertheless, at lunchtime today the company’s stock was trading just under $10 a share, down almost 7 percent from Monday’s close of $10.68. Meanwhile the market as a whole was down much less, with the Dow off 1.2 percent and the NASDAQ off 1.4 percent.
O’Reilly said she doubted the company would have more to say than what was in the emailed announcement, though she agreed to try to obtain clarification on the reference to the restructuring being in support of “the changing needs of our customers.” We asked what those changing needs are and what the company’s strategic direction is now.
In the first quarter of this year, Monster posted a $10.3 million loss on revenue of $132 million compared to a profit for the same quarter the year before of $22.6 million on revenue of $228.7 million.