May 2, 2001 : Loudcloud Cuts Work Force


📅 - Loudcloud Inc. (loudcloud.com), a leading provider of managed services, announced on Tuesday that it had launched a series of initiatives designed to help the company reach the breakeven point with its cash flow using existing cash and available financial resources.

According to Loudcloud, the program is the result of a review of every aspect of the company's operating and financial structure, including the benefits the company has seen from its proprietary Opsware automation software.
Foremost among the restructuring moves is a reduction of 19% in the company's workforce. The elimination of 122 positions will result in a post-restructuring staff of 507 employees.
The company says the cuts are designed to facilitate a continued focus on customer sales and support, as well as the company's core research and development efforts, while scaling back other internal support functions.
Loudcloud says it is also taking steps to maximize its use of existing investments in technology and data center facilities. The company expects to find other cash savings in the reduction of discretionary expense items.
According to Loudcloud, the cutbacks are part of an ongoing effort to prudently manage expenses. The company says its business model is designed to replace human capital with technological automation, adding that it is confident it can maintain its levels of quality and service with its reduced levels of staffing.

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Company: loudcloud.com

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