NaviSite, a CMGI operating company that offers outsourced Web hosting and application services to businesses, is cutting 44 people, or 7 percent of its workforce.
The publicly held Andover, Mass., firm , majority owned by CMGI, said the cuts are part of its “ongoing efforts to increase efficiency through automation and improved work processes.”
Related to the cuts, NaviSite will centralize product development, close two under-performing regional sales offices, and lower other operating expenses to gain further efficiencies.
It did not say which offices were closing. Responsibility for the two sales territories would be absorbed by two of NaviSite’s 11 other regional sales offices.
The company said it would also boost its investment in product development.
“NaviSite will continue to strive to drive down costs through increased efficiencies, and will continue to raise the bar in terms of innovation,” Joel Rosen, president and CEO, said.
The job cuts come two months after CMGI announced it would accelerate an $80 million capital injection for NaviSite, on the belief institutional investors would slow down their financing in a cooling market for investments.
