dcsimg
RealTime IT News

Breakaway Raises Cash, Lays Off 108 Workers

Internet consulting firm Breakaway Solutions has laid off 108 workers and moved its headquarters from Boston to Maynard, Mass. The moves are expected to save the company $45 million annually.

The bad news was buried in a press release detailing $33 million in financing from SCP Private Equity Partners, Internet Capital Group and Invest. The backing will be used for operating expenses.

"Most of the cuts came from Boston," said Jennifer Meyer, a Breakaway spokeswoman, who said further details would be provided during the company's fourth quarter and year-end conference call on Feb. 28.

The firings happened Thursday, and the company is already in the process of shutting down its downtown Hub offices and moving into its existing space in the Clock Tower building in Maynard, the former Digital building.

The company's new financing breaks down like this: $20 million from SCP Private Equity Partners; $10 million from Internet Capital Group ; and $3 million from Invest (already closed). SCP's and ICG's financing is expected to close in April.

"This capital infusion provides us with the means to continue our push towards and achievement of profitability and the long term vision of our (full service provider) model," Gordon Brooks, Breakaway's president and CEO said in a statement.

Layoffs come about two months after Breakaway said it would lay off 20 percent of its staff and try to ride out the wave that swamped many in its sector. Three months earlier, it laid off 10 percent of its workers.

After a strong IPO, BWAY stock has tumbled more than 90 percent this year. On news of the financing, shares traded up .125, or 11 percent, to 1.25. At one point in the last year, the issued traded as high as 85.5.



×
We have made updates to our Privacy Policy to reflect the implementation of the General Data Protection Regulation.