Xceed's Chairman Resigns Amid Restructuring Plans
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Internet consulting firm Worldwide Xceed Group Inc. announced Friday that Scott Mednick has resigned as a director and chairman of its board. Mednick had held both positions at the design-house-turned-professional-services-firm since July 1998.
The resignation comes as no surprise to many observers. In recent months, the company has struggled to restructure its business amid growing shareholder concern and executive changes. Company officials could not be reached for comment by press time.
The company's share price has lingered below a dollar since November 27, when it hit an intraday high at $1.00 before closing at 81 cents. Friday, Xceed opened at 16 cents, down 100 percent from its 52-week high of $48.
The resignation was not the first executive shakeup in recent months. Back in October, the company replaced former chief financial officer John Gandolfo, who left the company to pursue an opportunity in an unrelated industry. His replacement, Douglas Laux, was a former partner at the Chicago branch of Ernst & Young.
Besides executive changes, the staff of Xceed has experienced a restructuring as well. In mid-September 75 full-time employees were laid off when the company's business unit, Xceed Performance Group, was put up for sale. The company blamed the staff cuts on a restructuring plan aimed at streamlining operations.
In a statement issued Friday morning, company CEO Howard Tullman said, "since last September, Xceed has been rigorously examining its organizational structure and operational systems and matching resources to client needs with a focus on achieving profitability and sustainable growth. We have also implemented executive management changes and brought in senior level management in support of our restructuring plans and to guide the company as it emerges from these strategic changes."
The CEO also said a new chairman has not yet been named.
Xceed has offices in San Francisco, Los Angeles, Phoenix, Colorado Springs, Chicago, Atlanta, Dallas, London and Amsterdam.