DMA Layoffs Include Long-Term Executives

There were four high-level employees among those laid off by the Direct Marketing Association on Monday.

Three of the four senior personnel held significant tenure, according to the DMA’s “new hire” press release archives and published sources.

The fourth, former senior vice president of sales and marketing Alan P. Kuritsky, was the only one hired during DMA president and CEO John A. Greco’s term. Kuritsky was hired in June 2005. Greco joined the DMA in August 2004.

Other top executives laid off included James F. Conway, vice president and counsel for corporate and social responsibility; Peter Johnson, VP and senior economist for strategy, analysis and planning; and Charles A. Prescott, VP of global development. All were in place before July 2004.

Another pre-Greco holdover, senior vice president for corporate responsibility Patricia Kachura, had previously announced her retirement, effective December of this year.

These were not the only long-tenured individuals laid off: Leslie J. Benjamin, director of education and event marketing; Douglas Berger, director of member communications; and Barbara Lewers, director of advertising services also joined the DMA before July 2004.

In all, around 21 employees were let go. Before the layoffs, the DMA employed somewhere between 110 and 120 people, according to industry guesstimates.

Asked about the layoffs, the DMA issued the following statement: “Like so many prudent businesses, DMA is restructuring to ride out the current economic situation ensuring we remain strong and capable of continuing to provide outstanding service to our members and customers well into the future. As we proceed, it is our hope that the restructuring will be seamless to members. It is our intent to enhance our members’ DMA experiences, build upon our strengths and continue to improve and deepen the value of DMA to the growing direct marketing community. It would be inappropriate to discuss individuals affected by this restructuring. We’ll have no further comment.”

Direct Newsline was unable to ascertain the tenure of the junior-level employees let go. At deadline, representatives from the DMA were not available for comment.

Among the 18 VP or-higher-level executives apparently still with the organization (not including Kachura), only three – Jerry Cerasale, senior vice president of government affairs; Kenneth P. Ebeling, senior vice president of member and segment services; and Stephen J. Michaele, vice president of information technology and chief information officer – predate Greco at the DMA.

A fourth, Xenia (Senny) Boone, currently senior vice president, corporate and social responsibility, had been executive director of the Direct Marketing Association Nonprofit Federation since 2002, but was promoted to her current role as senior vice president of corporate and social responsibility in 2006.

As for the other layoffs, according to several sources, the organization’s marketing department has been decimated, with most marketing employees at or above the director level having lost their jobs. The cuts also include two individuals within the conferences division.

The cuts follow a round of distressing financial news for the organization. Between 2007 and 2008, the DMA’s revenue dropped from $39.7 million to just over $39 million – and as its financial year ends on June 30, those figures do not include results from the most recent annual conference, which casual observers described as lightly attended.

Much of the revenue drop came from falloff in meetings and conferences, as well as in its educational services and research and strategic information. Its losses in these areas were partly offset by gains from its new Mail Moves America program.

In contrast, the company’s expenses, which as of June 30 totaled $29.5 million, were on par with those for 2007.