VSDA cuts staff after convention drop-off
Spokesman says org still financially sound.
AUG. 2 | Just two weeks after closing one of its lowest attended conventions ever, the Video Software Dealers Association laid off about one-fourth of its headquarters staff.
Organization officials on Aug. 1 pink-slipped five staff members, and sources expect there could be at least one more person let go. Confirming the five layoffs, VSDA VP of public affairs Sean Bersell declined to identify individuals or positions affected, but said the cuts were "across the organization." Sources said cuts were made in marketing and communications and membership, at the director level or below.
Bersell said the layoffs were made after an examination of VSDA's operations and strategic plan. "We are confident that the members will not see any diminishing of the products and services of this organization."
VSDA is experiencing a "significant shortfall" in revenue as a result of "decreased dues income, unrealized investment losses and underperformance of tradeshows," according to a summary of the board meeting held on the eve of the convention.
Bersell declined to give any specifics on the VSDA's financial results. "The association is fundamentally sound financially," he said.
VSDA last week said that about 4,000 people attended Home Entertainment 2002 in Las Vegas last month, a drop of almost one-third from the organization's previous convention held in January 2001 and one of its lowest attendance figures ever.
VSDA president Bo Andersen nevertheless called the July 16-18 convention, which had a new business-meeting format and a new venue at the Rio All-Suite Hotel & Casino, a success.
"These attendance figures exceeded our expectations for this first year where we have implemented an all new format," he said.
The organization said total net income from January's AVN Adult Entertainment Expo, Home Entertainment 2002 and the upcoming East Coast Video Show (set for Atlantic City in October) is expected to fall short of budget objectives. Expenses are within budget, the board was told. All three shows are produced by VSDA in partnership with Advanstar Communications.
For its January 2001 show, VSDA reported attendance of 5,930. That event was held concurrently with the Consumer Electronics Show and alongside the AVN Adult Entertainment Expo, which in 2001 drew 17,000 attendees.
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