RealTime IT News

Stamps.com Stamps Out 240

After several months of axes falling on unsuspecting heads, layoffs are still omnipresent as Stamps.com Monday took a big bite out of its workforce.

The e-postage provider slashed 40 percent of its staff, or 240 full-time, part-time and contract employees across all locations, including Santa Monica, Calif., and Bellevue, Wash.

The move is part of Stamps.com's plan to streamline operations and reinforce its position as a market leader in Internet mailing and shipping solutions.

The cuts also come two weeks after Chief Executive Officer John Payne, President and chief Operating Officer Loren Smith, Chief Financial Officer John LaValle and Comptroller Candelario Andalon quit.

"Although we have nearly $300 million in cash reserves, today's competitive environment demands that we operate our business at maximum efficiency," said Stamps.com Chairman Marvin Runyon. "These moves will strengthen our ability to attain our profitability goals, while adding value to the company."

Runyon also said his firm will focus on deploying its iShip service to large corporate customers. Launched in June, iShip is an Internet-based service that automates shipping while still allowing for central management and cost control.

iShip, the flagship technology of iShip.com, which Stamps.com bought a year ago this week for $300 million, gives employees the ability to process shipments from any desktop with a Web browser.

Stamps.com goes head to head with E-Stamp and Pitney Bowes in the e-postage sector.

Stamps.com was down 8 percent to just under $3 per share in morning trading -- a far cry from its 52-week high of $98.50 and just percentage points from its 52-week low of $2.31.