Are you suprised?..

Miva has issued a press release announcing a restructing plan that will reduce their workforce in the US & Europe by up to 20% by the end of May 2007.

Peter Corrao, Chief Executive Officer of MIVA explains –

“This next course-correcting step, while difficult, is fundamental to achieving our turnaround goal for stabilizing cash and returning to positive operating margins. This step complements our strategy for increasing the overall mix of MIVA-owned primary traffic, which we believe over time, will facilitate higher gross margin revenue on top of a more efficient cost base.”

To be honest, this will probably not come as a real suprise to anyone.

There has been and still is a LOT of crap on their primarily content based network, which needed sorting out a long time ago before everyone stopped spending with them. It seems they have now realised that a severe lack of ‘quality’ network partners in turn often means low conversion for advertisers who won’t just spend without getting return.

Whats next?

Well it seems like they will be effectively dropping a lot of their ‘innovative’ products, such as pay per call and focusing on their precision network in an attempt to improve the quality of partners in a push to claim back advertisers. They will also be moving to develop their own content sites & portals, but don’t expect anything to soon.