Vicinity Corp. to Cut 40 Workers
The announcement came despite the company reporting revenues of $5.4 million for the first quarter of fiscal 2001.
The Sunnyvale, CA, company said the cuts were across the board. Approximately 160 employees would remain, the company said.
"We are experiencing the same general economic slowdown as many other companies, which is resulting in lower spending by the companies we target," said Emerick Woods, president and chief executive officer at Vicinity. "We are maintaining our commitment to achieving profitability on a now-lower revenue forecast, which has required some action on the staff side, in terms of cost reductions."
Woods said that the company expects to reduce its cash burn rate by approximately 35 to 50 percent per quarter.
"We do not feel this in any way compromises our ability to continue to support and service our customers at the same high levels they have experienced in the past," he said.
The staff reduction is the company's second round of cuts. In November, Vicinity laid off 20 people, Woods said.