infoUSA Slashes 325 Jobs
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infoUSA, provider of proprietary business and consumer databases and sales and marketing solutions, cut 325 jobs Monday in an attempt to shore up its cash flow and attain profitability by the first quarter of 2001.
The company also reduced expenses, scaled back its Internet operations and eliminated under performing divisions.
"In view of the weakening economy and the likelihood of recession, we will be managing our business to maximize our cash flow," said Vin Gupta, chairman and chief executive officer of infoUSA. "By more closely matching revenues and expenses, the company expects to improve profitability and EBITDA in 2001, thus improving shareholder value. infoUSA plans to use anticipated higher levels of liquidity to continue to strengthen its balance sheet by accelerating payments on outstanding debt."
infoUSA said the positions eliminated include administrative and support functions as well as selective reductions in executive headcount in under performing operations including 63 job cuts in its majority-owned subsidiary, infoUSA.com.
The company cut back its investments in other Internet companies as well, closing VideoYellowPages.com and scaling back businessCreditUSA.com to bring expenses in line with revenue expectations.
"We decided to limit our Internet exposure to only those operations that we could operate profitably," Gupta said. "We expect these remaining streamlined divisions to be cash flow positive during 2001."
infoUSA anticipates a one-time charge during Q4 2000 to cover severance expenses and other non-recurring restructuring charges.