iCrossing Layoffs - So Many Questions!
Posted by bill on June 01, 2007 at 02:34 PM
It's enough to make you cross-eyed. When it's reported that a competitor is laying off 20 percent of their entire staff during a boom-time in your industry, all you have are questions.
That happened today when Searcharrazi at Danny Sullivan's Search Engine Land blog reported that iCrossing had laid off up to 30 employees and may be laying off as many as 60, primarily in their Scottsdale headquarters, New York and Atlanta offices.
iCrossing has been on an aggressive acquisition tear, as Searcharrazi puts it, "on the path to an IPO". Acquisitions frequently lead to staff consolidation, but not typically in your headquarters or at one of your flagship offices like New York. So what's going on? Has one of the acquire-ees become the acquirer? Are there, as reported, some serious profitability issues?
The biggest question was summarized in a post to the Searcharrazi column: "What could the clients be thinking?" Are they supposed to lie down and accept yet another new or scaled down service team? How about prospective iCrossing clients? What are they thinking while the pitches continue? There are reports that the Atlanta office may soon be down to four people. What are clients in that region thinking?
With the revolution in search marketing represented by Google's Universal Search, and new social media and creative opportunities for marketers, search marketing continues to take up an increasing share of marketing budgets. These are the good times for established search marketing firms. So what in the world is going on at iCrossing?!
Comments (28)
Posted on June 4, 2007 09:13 AM
Please.
The post above from an existing employee must have come straight from HR.
iCrossing has been in acquisition mode for sure however, none of the layoffs have come from the locations of any of those acquired companies. iCrossing still operates in the red although they tout millions in sales. Easy to tout those sorts of figures when the numbers include their clients media spends. How about a profitability report?
Prediction: the company that wanted to go IPO at the beginning of the year is not going to because their financial story is not what it needs to be. They're acquiring companies to boost their books in hopes of going IPO next year - I don't think it'll happen. Years ago they (iCrossing)almost disappreared completely yet investors bailed them out. Looks like that's still happening.
Posted on June 4, 2007 12:01 PM
This company's upper manasgement was a joke from the start. No leadership and a CEO that changed his mind often as his undewear.
Posted on June 5, 2007 02:50 AM
Relieved to be out of there. Things seemed directionless since the acquisitions. I'll miss MikeG:)
Posted on June 5, 2007 03:44 PM
It is sad to see the good people of IC cast away like garbage. One that comes immediately to mind is Jonathon C. For many years he has worked as Herzog's "jack of all trades", loyal to the end. But in the end, loyalty gets you nowhere at IC, in the end, your job security will depend on how well you know Don Scales. Herzog seems to have been overpowered by Don and now Don has all of his former Agency.com people ruining ...I mean “running ” the company (into the ground), Herzog can’t afford to rock the boat or Don could pack up and recruit all of IC’s “Agency” employees away to his next “Enronesque” adventure. The only way I see to succeed at IC now is of course having been employed at Agency.com. If you couple the Agency experience with drinking large quantities of expensive wine with Don on the company dime, you can expect to be in Don’s “inner circle”. Many people of Don’s inner circle enjoy perks like, a large quarterly bonus, an incredible salary and little to no accountability. Additionally, you will likely get a VP title, more options then many of the founding employees. This is evident from plainly observing the cars folks at IC drive. Former Agency.com employees are buying new, high performance BMW's and Audi's while IC "old school" employees continue to park 3-4 year old sedans in the parking lot.
Posted on June 6, 2007 10:14 AM
Jonathan: I would blame those feelings on your parents. Nobody seems concerned about the impact felt by the company after we left. Loyalty is doing what you do for the sake of the company. THAT's what makes it and you successful and THATS what you should be proud of. Hey, the world owes me a new BMW too but Im not going to take it out on ICrossing. Hope I see you all down the road.
Posted on June 6, 2007 04:11 PM
Wasthere2, you totally missed Jonathon's point and it appears you're drinking a lot of Don's Private Reserve 2001 Morgan Estate "Kool Aid". Loyalty is a two way street. As far as bring parents into it, I am not sure how that is relevant, but it doesn't exactly lend to your credibility (how old are you anyway?). I will try to make this a little easier for you to understand, salaries, merit, advancement and rewards at IC are not based on what is best for the company or indivuduals, rather on Don's personal agenda which is usually not in line for what is best for all involved (even Herzog), or at the very least it is totoally dishonest and unethical. Case and point: Don appointed the legendary brilliant strategist who so came up the tagline "We are for finding" to a VP position. Need I say more?
Posted on June 6, 2007 05:17 PM
I agree w/ Jonathan Doe, Jonathan C. was and still is a good person. I can't believe they let everyone go. Why couldn't they let some of the overpaid Agency jerks go. They don't do any work at all. All they do is take credit from the people who do all the hard work. I don't like to use the word hate, but I will make an exception this time. I, and I am sure I am not the only one, the former agency people at IC. Just remember one thing Don Scales, what comes around goes around. Some day you will get yours. I just hope all of the former IC employees that you dicked over are there to see it. That would be awesome.
Posted on June 6, 2007 05:19 PM
Can someone please stop Don Scale and his henchmen. They are killing another good company along w/ the people. Some please stop the Agency plague soon before IC completely goes down the toilet.
Posted on June 6, 2007 05:24 PM
Just wanted to respond to icrossingemployee above. You are a complete IDIOT! Wake up and smell the coffee. You should go around and ask the remaining poor souls if that is the truth. The damage is already done. You have killed the moral in the office, and you can't do anything to reverse it. It would totally be funny if you got the ax next. We can only hope.
Posted on June 6, 2007 06:27 PM
WasThere2-Are you serious? Parents? Come on..really? I dont think Jonathon was saying anyone owed him a BMW, just that some people who have worked hard, done well by IC and have been promised much deserved more then Don's Agency Minions and Lackeys who have done little or nothing to benefit IC, sales are lackluster at best, account retention is poor and client and employee moral is at an alltime low (other then the lucky Agency.com "Untouchables". The company purposely misleads its employees, investors and especially their customers...case in point a "Linguistic Profile" they sell for $xx,xxx.xx ..seriously it is just keyword research! It has a pretty cover and some call outs, but it is something most respectable SEO companies include when working with a client.
Posted on June 7, 2007 12:19 PM
I also am thankful, now, that I got out before this last round of layoffs. I do have some questions though. If it is so necessary to lay off good people then why did Don come into our office in Chicago and tell the whole gang that he was bringing in the entire "Agency" office from Chicago and they would be bringing their biggest client, HP with them. Has HP really agreeed to be an icrossing account? Does icrossing really need more "Agency" people at really high salaries and low output? Do the current people left in Chicago really feel good about job security once all the new people come over? Does "Agency" care about losing their entire office to Don? Does Mr. Herzog care what Don has done and will continue to do to his company? I feel bad for my ex co workers, but will tell them to start looking now and there is a lot of great opportunity for them to move on. Good luck to ic, they need it.
Posted on June 7, 2007 12:39 PM
I think we all feel the pains of this leadership regime change. I just remember when Don first came in, we thought what a breath of fresh air he was. He was saying the right things "get off the revenue treadmill" and talking about growth and client satisfaction. That was a year ago. Now look at iCrossing...alone on its own island while other companies both larger and smaller are making millions (and some billions) little iCrossing and its entities still has not gotten the formula right. Don - it's about the people. It's about the people who work late, try hard, and try to understand and overcome what the lack of leadership and process can affect client relationships. Just about everyone I know at iCrossing is tremendously dedicated, and is very passionate to make that company a success, and guess what, it's not. The smoke and mirrors have caught up. The talent at iCrossing has left or is one foot out the door, and that is a shame. Money, stock options, and all of the agency BS yes were all things that upset us, but ultimately it was their ability to grow people. I do love reading this stuff. To current iC and leadership, I say good luck, you are all going to need it in what is now a very competitive market with lots of talent and lots of opportunity to steal your clients. Just watch...
Posted on June 7, 2007 02:13 PM
Wake up and smell the coffee folks! The layoffs were a blessing, in the sense that all of the now former ic employees, including myself, don't have to be there when the whole company burns to the ground. Herzog will be crying like a baby when it happens and will be left wondering why he let a snake like Don Scales poison a great company. Agency.com, oops, I mean ic needs to somehow stop shooting themselves in the foot and get rid of the real problem, the king retard himself Don Scales and the rest of his mentally challenged staff of Agency idiots, and bring back the real heart of ic. Then Herzog can let them do the work they know and love to do and see the real profit they can generate. Who am I kidding, Herzog is 100% brainwashed by Scales and his BS that something like that would never happen. Anyways, to all of you who were let go by the "New" Agency.com best of luck and I hope we can all work together again in the future.
Posted on June 8, 2007 06:31 PM
HELLOOOO Herzog?...Why have you given this control to Don Scales? He is so incredibly dishonest…. How much did he pay your VP of Sales? (who had no search experience, few contacts, no management exp and has brought little to the table) he will make more then most of your Execs. Including things like signing bonus, overrides, insane salary, you could have hired an entire sales team, or at least someone who has experience running a sales organization. As far as landing HP, they have already been alerted to read this and the searchengineland articles and comments. I doubt they will be an IC client in fact I know they won’t. IC has too many influential ex employees that will chip away at their customer and prospect base by providing nuggets of info about Don Scales and others. Herzog, you really messed up, even though you are pocketing millions with each round of investment, and your name has negative connotations associated because of things like staffing the Atlanta office with Temps while Orkin toured, purposely misleading Orkin into believing you had more employees then really existed there. What a crock!
Posted on June 9, 2007 03:19 PM
Check out the "careers" link on the iC site. 10 positions have suddenly opened up in - where of all places - Dallas.
Posted on June 12, 2007 12:08 AM
Don Scales + iCrossing = failure. Get out while you can folks. You will see in the end how bad he and his "Agency Superstars" are. I feel bad for the remaining good hard working people there. Get out while you can, there are plenty of good jobs out there for all of you. Believe me when I say that the word about how bad ic really is and it is spreading fast. I hope it comes back to Herzog and realizes what he has done. Soon no one will want to work w/ ic because of his buddy Don. Get out while you can.
Posted on June 13, 2007 09:32 AM
If you're at icrossing and you trust anything that Don says, you're a complete idiot. He is not only an incompetent leader/manager, but one that cannot be trusted either. If you are still there, RUN, do not work, to the nearest competitor. You'll thank me in the end.
Posted on June 13, 2007 11:55 AM
You know, I have been following this string for a little while now, and I find it pretty interesting. I used to be at ic and was one of the ones who got laid off. I have to say that the people are what makes the company, and I think they forgot about that. I hope that some of the smart VP's, who I still think believe that, will leave soon. Possibly start their own search company. I think both Jeff Johnson, & Jeff Pruitt should do it. Being that I have been around them long enough to know they are smart and know what they are talking about. I just hope they haven't bought into Don "The Dick" Scales BS. That would be too bad, they are good people. Oh well, what can you do. I am in agreement w/ ICWrong, if you are still there GET OUT! It will save your mental stability. Good luck to all the former ic folks, and hopefully ic will get what they deserve in the end.
Posted on June 14, 2007 02:06 PM
Don't count Herzog out, despite some of the recent challenges I'm sure he'll pull it out.
Posted on June 14, 2007 04:15 PM
They say the truth hurts. Yesterday Herzog had all company call where he told anyone who believed what was being written on blogs like this one to "get the f*#k out". Like all great leaders he was very colorful with the language that he used. I am sure the company is on the path to greatness when it's top executives worry so much about what is being written about them on blogs. Maybe they should be more concerned about the only press they get is when they release their own press releases, rather than from any flattering articles written by the industry journalsts.
Posted on June 15, 2007 02:26 PM
If Herzog said that, then these postings have had an effect on him. There is a common string I see. Don Scales has conducted himself quetionably if not outright dishonestly. Jeff Herzog seems to be absent or unable to do anything while his vision is eroded away. finally, the Agency.com team is not worth much and have displaced the people who did. unfortunatly for IC and Jeff Herzog, the jig is up and there are now so many Ex IC people out there that collectibly he our voices carry weight. Imagine all of the negative things that are being asid to all of their current clients and potential customers. The problem wont go away until Don Scales does.
Posted on June 17, 2007 07:27 PM
I will comment by saying i used to work for ic when they were young and helped grow sales into large corporations and in my opinion, their sales efforts were the worst I have ever seen in a (aggressive sales company.
I do admire certain people like Jeff Herzog who have brought serious thought to this industry and for them smashing traditional agencies and their lame search services.
Their sales team might think they are good but they stunk. I salute them for their great SEM thoughts but i also see a culture where team is really i.
Good luck to all their ex employees but opportunity is plentiful, they will do just fine I am sure..
Ranger
Posted on June 18, 2007 02:34 AM
Ah! I see the word is getting out about IC and all the folks who are killing the company. I was at that so called "meeting," where he said get the F-out. I just have to let Herzog know that WE ARE TRYING TO LEAVE. Basically, Mr. Herzog you have killed the moral in this place, I remember how much fun this place used to be. It is not that we are not passionate about our jobs, it is just your choice of people you laid off are just flat out wrong. You have definitely bought into the Scales BS. Too bad, you were once someone we could believe in, but now I think the majority of us just want to leave. Do the right thing, bring back to good, hardworking folks and get rid of the idiots like Scales and his f-ups. More to come next week from out next meeting. I hope someone actually creates a New Blog about this issue. I do have one question to Mr. Herzog, (let's see if he will address this one w/ F-words as well) why is it that we don't have any press releases by any accredited media outlets? I have never heard of a company that posted their own press releases. I hope someone will keep track of how many times Herzog looses his cool in these meetings. LOL Oh yeah, can someone explain to me that random emails, like the one from last week. Just curious. Take care everyone, keep posting.
Posted on June 18, 2007 03:07 PM
WOW! I hear you loud and clear ICShame. I was there too, and I have to say Herzog is a lunatic. Talk about throwing gasoline on a fire. I hope everyone in all the offices can read these. After last Weds. comments, I wonder who else will be aboard the ic disaster. I have to wonder about those random emails as well. Goes to show you how simple minded and paranoid a person can be. I think it is time our fearless leader see a shrink and learn how to deal w/ people on a more civilized note, or maybe he is just seeing Don's shrink. lol Good luck ex-ic'er's. I am sure a lot more of us will be joining you soon. As ICShame said, keep posting and keep the truth going.
Posted on June 19, 2007 12:01 AM
Does the truth hurt Mr. Herzog? You should do the right thing and let the overpriced Agency jerks go. It may save you some face w/ the remaining few of us. Bring back the hardworking people you let go and restore the company to what it once was, a good brand and company. Unfortunately I, like so many people at IC, am a realist so lets all be real. It won't happen because you don't believe in us you believe in Scales and his group of misleading liars. Just like ICShame & icdeadpeople say keep telling the truth, someone out there will eventually catch on and do something about it.
Posted on June 19, 2007 10:45 AM
Well we've let this thread run for a couple of weeks now - hopefully we've provided a forum that served a purpose for all interested - regardless of perspective. Seems as comments continue to appear though, they're becoming a bit more personal so we'll be ending the story here. For those ex-employees, best of luck, the future is bright in our industry. For those still there, do your best work and try to adapt to changes going on around you. You'll likely grow as a result.
Enjoy your summer.















Posted on June 2, 2007 03:45 PM
Hi, I work for iCrossing and I have to say that layoffs are hard, but companies can also grow to a size where they have some redundancy and need to deal with the issue to grow profitability. iCrossing has some amazing people working there and none of the client service teams will be impacted. iCrossing has many people assigned to its service teams and these people are the heart of the organization and not effected by these layoffs.