Marchex Lays Off 15, Realigns Business Units

Local search and performance ad firm Marchex has shed 15 jobs--about 4% of its 300-plus workforce--as the company reorganizes operations and eliminates redundancies after completing several acquisitions during the past few years.

Spokeswoman Leigh McMillan said the Seattle-based company continues to look for efficiencies during tough economic times. Until late 2008, the online ad industry had diverted a slowdown in advertising sales. Although analysts suggest a slight increase in activity this year for search and pay-per-click campaigns, all agree that sales will slow.

"Marchex has acquired several companies in the last few years and we have been bringing the company product units together," McMillan said. "We expect the alignment will better foster innovation for customers."

McMillan said the company will continue to add specialists. Existing employees and new hires will focus on local search and advertising, as well as innovation on local search for consumers.

The reorganization did push some executives and employees into different roles. Among those, Matthew Berk moves from serving as lead search architect to EVP of product engineering. He will oversee the development of all of Marchex's local search and performance advertising products. Berk founded and served as CTO for Openlist, which Marchex acquired in May 2006.

Berk continues to report to Peter Christothoulou--who assumes the role of COO, overseeing all operational and product functions, including sales, business development, customer and partner management, publishing local search and product engineering. Christothoulou, co-founder of Marchex, previously served as the company's chief strategy officer.

Christothoulou will report to Russell Horowitz, Marchex chairman and CEO. John Keister continues as Marchex's president, focused on building and expanding the company's strategic relationships. Keister, a co-founder of Marchex, also will report to Horowitz.

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