Marketplace operator Adatom.com Inc.
Monday afternoon slashed 45 percent of its workforce en route to
restructuring to focus on international operations.
Adatom will transition from its operation of the superstore and AESP
properties, which have been the dominant source of the company’s revenues,
to licensing the properties to Adatom’s international partners and others.
With the cut of about 25 people, the firm hopes to reduce spending by 55
percent and seeks to achieve increased revenue growth, reduced expenses and
accelerated time to profitability.
Unlike most U.S. companies, whose reshuffling is completed to adress needs
within the country, the California-based outfit directly hopes to meet the
increased demand from buyers and sellers in both the U.S. and China to
participate in bi-lateral trade through Adatom, utilizing its strategic
agreements with key Chinese government and private institutions.
Richard S. Barton, president and chief executive officer of Adatom.com, said
Monday that the firm’s decision was based primarily on buyer-seller demands
to tap Chinese government and private enterprises.
“Our licensing program seeks to accelerate our global expansion and put into
place regional partners who can take advantage of our B2C and B2B business
models while enjoying the benefits of our global e-Commerce marketplace,”
Barton said.
Adatom enjoys several relationships in China, including partnerships with
the China Product Trade Net Center, the Yangling Agricultural Hitech Zone
and the China Federation of Industrial Economics.
