Silicon Valley -based hosting services provider iAsiaWorks Friday slashed its staff by nearly 50 percent in an effort to conserve cash while it explores alternative sources of funding.
The company, which specializes in providing Internet data center and hosting services in the Asia-Pacific region, cut its staff by 127 workers, reducing the number of employees from 288 to 161. Fifty of the positions were cut from the company’s Burlingame, Calif. headquarters, while 77 came from its Hong Kong operations. The company maintains data centers in Hong Kong, Korea and Taiwan, and provides a range of advanced hosting services through strategic partners in Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, Thailand and the U.S.
iAsiaWorks said it will take a $700,000 charge in the second quarter as a result of the restructuring, but it also expects to save $9 million per year in operating expenses.