Web consultant loses top executives

US internet consulting firm MarchFirst, which counts Microsoft as an investor, has lost three board level members of staff, including its chief executive and chief operating officer.

Robert Bernard, chairman and chief executive, Thomas Metz, president and chief operating officer and Joseph Bong, executive vice president of the company's client services group, have stepped down from their positions at the Chicago-based firm. The company did not disclose why the three decided to resign.

Steve Pollema, executive vice president of global operations, has replaced Metz as president, and a three-member executive committee has been formed to assist with the management transition, the company said.

In addition, MarchFirst has engaged recruitment firm Korn/Ferry International to assist in an immediate search for a new chief executive.

Despite a recent $12m interest-free loan from Microsoft and a $150m investment by equity firm Francisco Partners, the company has been under financial pressure.

Last month, MarchFirst posted a wider than expected loss of $73.2m in its fourth quarter, and lowered its sales estimates for the first quarter of fiscal 2001.

MarchFirst had earlier stated in a filing with the US Securities and Exchange Commission that it needed approximately $50m in additional financing by the end of 2000 and another $50m in early 2001 to refinance its existing bank facilities and to meet the company's liquidity needs for the foreseeable future.

Since November, MarchFirst has laid off about 2100 employees, as it continued to cut costs and streamline operations. Through the reductions, the company has said it plans to save approximately $100m a year.

MarchFirst was created from technology consulting firm Whittman-Hart and internet marketing firm USWeb/CKS. The company has 68 offices with 7000 employees in 14 countries.

See also:

MarchFirst files for bankruptcy

Beleaguered internet consultancy MarchFirst filed for Chapter 11 US bankruptcy protection soon after the Nasdaq Stock Exchange halted trading in its shares.  17 Apr 2001

MarchFirst slashes jobs and spurns dotcoms

MarchFirst is cutting further jobs after a first round of redundancies failed to achieve the cost savings it needs.  11 Jan 2001

Internet agencies face a 'bloodbath'

Internet consultancies are quietly trying to sell themselves off to more established players. But at least one will go to the wall within six months.  13 Dec 2000

MarchFirst reissues options to keep staff

New media consultancy MarchFirst is trying to boost morale and prevent staff defecting by rewriting its share option deal, which has been undermined by the dotcom share price collapse.  30 Nov 2000

KPMG turns web specialist

KPMG Consulting initiated a decisive attack against the new wave of internet consultancies this week by launching its own dotcom specialist firm.  09 Nov 2000

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