Xchange Lays Off 15 Percent of Work Force
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.