Stamford, Conn.-based META Group Inc., best known for its research reports
and consulting practice, Thursday announced a reshuffling of the executive
deck and said that it had slashed its work force by 15 percent in order to
save $10 million.
Stepping down are META’s President Larry R. DeBoever and Peter Burris,
co-research director, president, and chief executive officer of the firm’s
online venture, metagroup.com. Both will, however, continue as non-paid
research experts for consulting and speaking engagements.
As for the staff cuts, 100 employees — primarily in sales, administrative
positions and metagroup.com — have been let go. The company’s work force
now
stands at 595.
Dale Kutnick, META’s chairman, CEO, and co-research director, said the
maneuvering would result in an estimated annual cost savings of
approximately $10
million, including $8 million in payroll and related benefits savings. The
company currently expects to reduce capital expenditures from nearly $12
million in 2000, to approximately $4 million in 2001. The changes are geared
to help META stay on the path to profitability by the third quarter of 2001.
META Group expects to take a one-time cash charge of approximately $400,000
in connection with this reorganization in the second quarter of 2001.
Metagroup.com will also be rolled into the company and will no longer serve
as a separate division. Still, it will continue to offer research and online
tools to clients.
In the meantime, Charles “Chip” McCreary, president of executive recruiting
firm Austin McGregor International, has been asked to search for a new
president who, after a specified period of time, would become chief
executive
officer of META. For now though, the outfit has established a special
operating committee consisting of Kutnick; Robert Toole, chief operating
officer; John
Piontkowski, chief financial officer; and Howard Rubin, executive vice
president and
research fellow.
Calling the reduction in headcount “painful,” Kutnick expressed confidence
that the restructuring will make META leaner and meaner to improve operating
efficiency. He also stressed that reductions in research services was
limited to five workers to improve services to clients.
META’s announcement is the latest in a series of cutbacks among companies that provide services and advise companies in the technology arena. Especially hard hit have been e-business firms providing Web development and strategic consulting, including
Viant
Corp. and Organic last week and Modem
Media in March.
