A recent political advertisement targeting Republican U.S. Senate candidate David McCormick has reignited scrutiny of his tenure at FreeMarkets, a former Pittsburgh-based online auction company. The 30-second spot, launched by the Democratic super PAC WinSenate, aims to cast McCormick’s business record in a negative light.
The ad, which began airing on September 24th, has been broadcast over 300 times, primarily in the Pittsburgh market. WinSenate has invested over $800,000 in the campaign as of October 3rd, according to estimates from ad-tracking firm AdImpact.
WinSenate’s commercial paints a picture of FreeMarkets as a thriving Pittsburgh tech company that suffered under McCormick’s leadership. It claims he laid off employees, outsourced jobs to China, and then sold the company for a substantial profit, using the proceeds for personal luxuries.
However, a closer examination of financial records and contemporary news reports reveals a more nuanced story. McCormick joined
FreeMarkets in late 1999, just as the company went public. By the end of 2000, the firm’s global workforce had more than doubled to 968 employees. McCormick ascended to the role of president and later CEO in 2002.
During his tenure, FreeMarkets did expand its overseas operations while domestic employment remained relatively stable. The company maintained that this expansion was aimed at growing its global business rather than offshoring jobs. However, there was a modest reduction in the North American workforce from 758 in 2002 to 702 by the end of 2003, while employment in Asia and Australia grew from 119 to 190 positions.
McCormick oversaw the sale of FreeMarkets to Ariba in early 2004 for approximately $493 million. Contrary to the ad’s implication, this sum represented the total price paid to all FreeMarkets shareholders, not a personal windfall for McCormick.
In response to the attack ad, McCormick’s campaign has emphasized his role in the company’s growth and his efforts to preserve jobs in Pittsburgh. They argue that he helped build the company and worked to maintain as many local positions as possible during challenging times for the tech industry.
Former Ariba CEO Bob Calderoni has defended McCormick’s actions, stating that he insisted on keeping jobs in Pittsburgh as part of the merger agreement. Despite some job losses, reports indicate that six months after the sale announcement, Ariba’s Pittsburgh office still employed about 500 workers, more than any other Ariba location.
McCormick’s campaign has countered with its own advertisement, featuring former FreeMarkets employees praising his leadership and the company’s positive impact on Pittsburgh’s economy. However, this ad may overstate McCormick’s direct role in some of the company’s earlier achievements, such as the installation of the FreeMarkets logo on its downtown headquarters in 2000.
The debate over McCormick’s business record highlights the
complexities of evaluating a candidate’s past corporate leadership in the context of a political campaign. While critics point to job losses and overseas expansion, supporters emphasize the challenges of navigating a volatile tech industry and efforts to maintain a significant presence in Pittsburgh.
As the Pennsylvania Senate race continues, voters will need to weigh these competing narratives about McCormick’s tenure at FreeMarkets and consider how his business experience might inform his potential role as a U.S. Senator.