Indianapolis-based Angie’s List (Nasdaq: ANGI) has announced job cuts. Though a precise figure has not been given, the company issued a statement saying the reductions are "primarily workforce related and targeting non-revenue generating headcount." It said the decision is related to continued efficiency efforts that could result in up to $20 million in savings.
The online home services marketplace provider is undergoing a major restructuring of its business model, including losing the paywall for customer reviews as it seeks to tap into a new generation of customers that haven’t been keen on paying for the services. In its third quarter earnings report, Angie’s List detailed a spike of some 1.6 million new members. However, a small profit reported this time last year turned to a $16.8 million loss in the third quarter of this year. Chief Executive Officer Scott Durchslag also announced this week a partnership with investment bankers Allen & Co. LLC and BofA Merrill Lynch he said is designed to maximize shareholder value.
The news has effected the company’s stock price, which was down more than 6 percent during midday trading to around $7 per share.