The French professional networking service Viadeo, which is in the process of restructuring to boost its recruitment services, has seen its revenue drop by 31 percent in H1 of FY2016 to €8.8 million ($10 million U.S.) from €12.7 million in H1 of FY2015.
The silver lining: the net loss of €4.3 million ($4.9 million U.S.) was lower than the loss of €6.9 million made in FY2015. All company activities have seen declines in revenue, but particularly its membership subscriptions, continuing on a path we reported on before (here). In an effort to cut costs, Viadeo reduced staff. Currently, 157 people work for the network, down from 196 people at the end of 2015, and 202 in June of 2015.
Viadeo is going through a transformation to focus on online, paid b-to-b services. In line with this restructuring, its recruitment, marketing and advertising services generated 59 percent of total revenue in H1 of FY2016, up from 53 percent in H1 of FY2015. Still, total revenue generated by these services were lower in H1 of FY2016 than in the same period of last year.
Viadeo, a network with eleven million members in France, currently promotes its ViaNext service to corporate recruiters and applicants, launched this spring (reported here).
It is actively seeking investment partners to ramp up ViaNext. At the same time, Viadeo closed down its subsidiaries in Russia and Morocco, in the wake of its withdrawal from China.
As part of its strategic re-alignment, Viadeo appointed Renier Lemmens as new CEO earlier this year (reported here). In addition, Viadeo appointed Francoise Gri as new chairwoman of the board (LinkedIn profile here).
Gri has served as chair of several boards in her career, including in recruitment, IT and tourism organizations. She is an expert in strategic repositioning, digital transformation and change management.