Bricsnet Lays Off 53
Page 1 of 1
Bricsnet (EASDAQ:BSNT), a Belgian firm with U.S. headquarters in Wakefield, Mass., that offers online services for the commercial building industry, has reorganized and laid off 53 workers, or almost a quarter of its staff.
The company said the reorganization was mainly a planned consolidation of eight companies it acquired over the past two years. Bricsnet closed four European offices and now has six around the world. Offices closed in Germany, France and the Belgium/Netherlands/Luxembourg region, where most of the layoffs occurred.
While giving no financial specifics, Bricsnet said in a statement that the cuts would "significantly lower" expenses and its burn-rate of cash on hand. Combined with growing revenues, the company said the cuts in research, development and administrations costs would allow it to break even (before interest, taxes, depreciation and amortization) by the middle of next year.
Bricsnet sells its web technologies and services for monthly fees, on the application service provider model, to commercial building owners and real estate management firms. The service is designed to help companies streamline the design, construction and management of multiple buildings. Customers include Bank of America, Hilton and CB Richard Ellis.
CEO Erik de Keyser said, "We believe these refinements in our strategy are leading to both strong growth and positive operating results. By consolidating our resources, further integrating our technologies and decreasing operating expenses, Bricsnet can continue to meet and exceed our promise of reduced time and improved efficiency for the worldwide commercial building industry."
Bruce Jenkins, executive vice president with the analyst firm Daratech, said, "Bricsnet has clearly listened to what corporate and real estate owners want, and it now stands ready to deliver. It's the right move at the right time."
In late-day trading Thursday on the European exchange, BSNT was up 0.15, or 2 percent, at 7.15.