Cheezhead Recruiting News and Opinion

On Monster’s quarterly financial earnings call, CEO Sal Iannuzzi described efforts by the entire staff to completely revamp their site with a new primary focus on delivering quality, not quantity, an obvious response to a growing disenchantment with the kind of candidates associated with the job board.

He said substantial marketing dollars will be infused into a massive relaunch of the job seeker portion of the site in January. The employer portion will also be completely renovated.

Iannuzzi said, “For now, sufficed to say that we have been absolutely committed to putting all the resources of this company behind overhauling the employer and seeker experience: a new Monster, if you will. It’s our biggest overhaul and relaunch since the inception of the company, and one that we will believe will dramatically improve our ability to anticipate and meet the needs of seekers and employers, energize our associates, and ultimately, help us grow market share.”

Monster reported earnings that rose to $30.8 million, or 25 cents per share, compared to $28.6 million, or 21 cents per share a year ago. Iannuzzi said the targeted 25 percent operating margin will not be met by the end of the year because of a softening economy.

Iannuzzi also acknowledged Monster’s recent layoffs by saying it was the right thing to do “given the company’s very solid foundation to navigate current economic conditions.”

“We eliminated redundant, nonessential positions,” he said. “The major changes are largely behind us. There are still opportunities that we may identify. We’re just gratified that we achieved very close to the target that we set out to achieve in terms of savings.”

As reported on the call, Monster has enjoyed about $95 million dollars in reduced costs to date since reorganization.

Despite the reduction, he said total headcount is relatively flat, resulting in an increase in 11 percent in annualized income per head.

Iannuzzi touched upon Monster’s class action lawsuit stemming from backdated stock options that has resulted in a repayment of $48 million to the plaintiffs. He thanked the law firm that helped them settle the lawsuit.

The CEO also announced the $72.5 million acquisition of Trovix, a provider of employment products and services that uses intelligent search technologies, calling the purchase a “game-changing” development for Monster.

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