CityGrid Media might be a much smaller company than it was last month, but parent company IAC is hoping it will also become a healthier one.

The West Hollywood local-advertising network laid off about 130 employees, about two-thirds of its staff, last week.

A spokeswoman for IAC said the layoffs occurred across all divisions at CityGrid, including review website CitySearch, but did not include Seattle-based Urbanspoon, which IAC has removed from CityGrid’s portfolio of sites.

Silicon Valley blog TechCrunch first reported the layoffs last week. IAC – Barry Diller’s New York media conglomerate – then released a statement confirming the cuts.

“The layoffs will increase operating efficiency, reduce costs and have a meaningful impact on the company’s future profitability,” the statement said. “By streamlining operations, we expect to grow the CityGrid network and increase returns for both publishers and advertisers.”

This is the second round of layoffs for CityGrid within the last year. The company cut 15 percent of its staff – or about 67 employees – in October under former Chief Executive Jason Finger.

At the time, Finger heralded the cuts as part of a transformation for CityGrid. The company had moved from offering advertising on a cost-per-click model to a cost-per-acquisition model, where advertisers pay a higher fee for an action such as a phone call from a potential customer.

Finger, co-founder of food-ordering service Seamless, was brought into CityGrid in March of last year. IAC Chief Executive Greg Blatt said in a statement at the time that Finger was “the perfect person to drive continued growth and innovation.”

But Finger resigned from his post after only a year with the company.

Ron LaPierre, a consultant and former president of PriceGrabber, has replaced Finger as chief executive. He is on leave to deal with a family matter, according to the IAC spokeswoman. IAC executive Andrew Moers, who heads the company’s Ask Partner Network, is handling day-to-day operations of CityGrid until he returns.

IAC recently placed CityGrid and its portfolio of websites under Moers’ oversight as part of its effort to turn the CityGrid business around.

“Andrew has got great experience working with networks,” the IAC spokeswoman said. “He will focus on the CityGrid network and returning it to profitability.”