Verio To Pare Work Force By 250
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Internet service provider Verio Inc. plans to trim its payroll by 250 workers as part of a broad plan to consolidate a growing number of facilities gained through a recent acquisition spree.
The announcement came late Tuesday when the company released its third-quarter earnings. Verio lost $33.6 million, or $1.03 a share, bringing its losses through 1998 to $88.3 million, or $5.06 a share. The company's earnings statement did not provide financials for the 1997 quarter.
Those results include a one-time charge of $3.4 million to cover the cost of eliminating jobs in its network unit. Verio said its recent acquisitions resulted in duplicate points of presence and other overlapping facilities. Verio closed 31 points of presence in the third quarter and plans to eliminate 17 others in the fourth quarter.
Because Verio did not detail per-share figures for its one-time charges, an accurate comparison to First Call Research Network's analyst estimates could not be made.
Among Verio's recent acquisitions are Web hosting firm Hiway Technologies Inc. and German Internet firm WWW-Service AG.
"The notable success of our acquisition program has greatly improved the strategic positioning of this company to supply a complete range of Internet services to our rapidly growing customer base," said Justin L. Jaschke, Verio's chief executive officer.