Apr 9, 2001 : iAsiaWorks to cut staff by 25 percent

📅 April 9, 2001 - Internet and Web hosting service provider iAsiaWorks (iasiaworks.com) announced on Friday that it will take steps to restructure its company by laying off 100 employees, 25 percent of its staff, and concentrating its hosting operations in the three specific Asian markets of Hong Kong, Korea and Taiwan.

The California-based company, which has provided hosting services in Asia and across the Pacific through partnerships in locations like Australia, New Zealand, China, India and the United States, says that most of the 100 jobs cut will be from its US and Hong Kong operations.
iAsiaWorks says the cuts are a response to the slowing demand in the US for Internet hosting services, and a general weakening the US economy. The company has decided to focus instead on what it believes are Asia-Pacific's best markets for Web hosting.
The layoffs follow recent cutbacks at iAsiaWorks? China, Japan and Singapore operations. In addition, the company recently sold its Australian shared hosting business. According to iAsiaWorks, the new cuts will cost between $6 million and $8 million, mostly in the amortization of stock-based compensation, and not cash-based charges.
Despite the harsh environment, iAsiaWorks says it is experiencing an increase in demand from Asia-based multinationals, and other businesses. The company says that by refocusing its attention, it intends to continue to grow in its key markets. It recently opened new data centers in Hong Kong and Taiwan in February 2001, and its Seul, Korea data center is scheduled to open later this month.
Along with the news of the restructuring, came the announcement that iAsiaWorks? chief financial officer and president of its US operations, Jon Beizer has been promoted to chief executive officer, replacing JoAnn Patrick-Ezzell, who will remain as chairman of iAsiaWorks? board of directors.