Updated from Aug. 6

Shares in Monster.com job service parent TMP Worldwide ( TMPW) met a frightening fate Wednesday on news of lowered guidance and an executive departure.

The company, which operates several online and offline recruitment and advertising businesses, says it continues to suffer from a jobless recovery that's softening demand for its services.

In addition, TMP said that Jim Treacy, chief operating officer since 1998 and president of the company since last November, will be leaving the company, though he'll continue on the board of directors.

TMP shares plunged 35% Wednesday, dropping $4.51 to $8.27, after the company elaborated on its weak results in a morning conference call.

Shares in TMP are down more than 80% from their 52-week high.

For the second quarter ended June 30, TMP reported revenue from commissions and fees of $291 million, down from $383.6 million one year earlier and just shy of the Thomson Financial/First Call analyst consensus of $292.5 million.

Adjusted earnings for the quarter of $15.7 million matched expectations of 14 cents per share, down from the comparable figure of 32 cents in the second quarter of 2001. The latest quarter's adjusted figures exclude a $448.4 million non-cash pretax charge, previously disclosed, for the impairment of goodwill, and reorganization charges of $114.4 million -- $84.1 million of that in cash -- covering workforce reduction and real estate consolidation.

In May, the company had forecast reorganization charges of $75 million for the second quarter, but TMP said Tuesday the charge reflected "greater cost reductions than originally anticipated," as well as charges for items "not previously anticipated."

In addition, TMP revised its full-year 2002 outlook from guidance provided in May -- guidance that was already revised downward from earlier forecasts. For the full year, TMP says it expects to show revenue of $1.17 billion, down from May's figure of $1.24 billion. TMP's operating margin will be 8% of revenue, the company says, down from its earlier forecast of 13%.

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