Xchange Lays Off 15 Percent of Work Force

Share this article:
Despite strong financials, Xchange Inc. still plans to lay off 15 percent of its employee base, the customer relationship management vendor said last week.


Xchange reported revenue of $15.8 million for the first quarter, up slightly from $15.2 million in the year-ago quarter, and a net loss of $6.2 million, up from $1.3 million in the year-ago period but down slightly from its fourth-quarter showing.


The Boston-based company said it was pleased with its performance in the quarter but must cut 72 jobs to reach its break-even goal by year-end.


"While these decisions are never easy, we feel it is in the best interest of the company to reach profitability as quickly as possible," said Andrew Frawley, chairman/CEO of Xchange.


The cuts were made in various areas, including development, professional services and general administrative jobs.


The staff reductions, which were effective immediately, left the company with about 420 employees.


To cover the costs associated with the job reduction, Xchange will take a one-time cash charge of $750,000 representing cash severance to terminated employees.


Additionally, the company is evaluating the appropriateness of additional non-cash impairment charges for certain long-term assets as a result of this restructuring.


"We remain committed to reaching breakeven by Q4 2001 and are taking strong measures to limit costs and conserve capital," Frawley said.


Share this article:

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Data/Analytics

AmEx Veteran Takes COO Role at Acxiom

AmEx Veteran Takes COO Role at Acxiom

Kerry Hatch ran American Express's OPEN business card division and led units at Starwood and Time Inc.

Red Roof Inn Turns Weather Woes Into Major Sales

Red Roof Inn Turns Weather Woes Into Major ...

The hotel chain woos stranded airline passengers with deals based on flight cancellations.

Signal Wants to Help CMOs Put Vendors to the Test

Signal Wants to Help CMOs Put Vendors to ...

The company claims its new Signal Tag can quintuple the number of A/B vendor tests marketers can do each year.