MDC Partners reported a second-quarter organic revenue decline of 1.7% while total revenues in the period decreased 2.8% to $379.74 million.
The company released second-quarter results after the markets closed today, but Wall Street -- anticipating the weak results -- drove the company’s stock down Thursday 8% to $4.55.
Net income attributable to common shareholders dropped from $8 million to $1.1 million year-over-year.
The weak results follow news last week that the company laid off a handful of corporate staffers including CMO Bob Kantor. On an earnings call today, company officials said the staff cuts cost the company $2.5 million in severance-related payments, but will save the firm $4 million annually going forward.
On the call, company CEO Scott Kauffman confirmed reports earlier in the day that Alex Bogusky is rejoining the firm’s agency Crispin Porter + Bogusky. Word of Bogusky’s return came just hours before news hit that CP&B global chief creative officer Linus Karlsson is leaving less than a year after he joined the agency.
On the call, Kauffman said results are expected to improve in the second half -- citing, among other things, new business activity that is heating up.
The company continues to evaluate its portfolio assets, which could lead to some divestitures, Kauffman said.