Aug 1, 2001 : NaviSite Cuts 25% of Staff Mike Drach

📅 August 1, 2001 - NaviSite, Inc. (navisite.com 👉 Total Reviews: 1
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👈 Official Responses: 0), a Web hosting provider,announced yesterday that it will be cutting 25 percent of its staff, or 126employees, in an effort to manage costs. This reduction is in response tolast month's financial report, which showed a quarterly loss nearly doublethe size of last year's loss.
The Andover, Massachusetts company said these job cuts include severalhigh-ranking executives in sales, marketing, strategic planning, and humanresources. NaviSite's general counsel, as well as 7 of 13 vice presidents,will be eliminated from the staff.
"By streamlining our organization and management structure, it will allow usto maintain the continuity that has helped NaviSite deliver a high level ofoperational metrics to our customers, and it focuses our resources onoperational excellence and select growth initiatives," said acting CEOTricia Gilligan, in a statement. "These actions are planned tosignificantly reduce our cash requirements, which are expected to lower ourrevenue requirements to become cash flow positive."
The company reported a net loss for the quarter ending April 30 of $29.3million, or 50 cents a share, compared to a $16.4 million net loss a yearprevious. NaviSite shares traded at 72 cents late Tuesday, just two centsshort of its 52-week low of 70 cents. Within the last year, NaviSite stockshave traded as high as $53.75.