[Toronto, CANADA] In an effort to ensure profitability in 2001, Cyberplex Inc. plans to chop its workforce by 20 percent whittling its overall headcount down to 264.
By issuing pink slips, the Toronto-based Internet professional services firm hopes to consolidate its current production facilities and streamline its non-billable functions. The company will redistribute its current client work to existing production facilities to strengthen its cost advantages. As well, Cyberplex says it will remain focused on sourcing business from multiple sales hubs and delivering production across a network of production centres.
“Over the past six months we have seen the sales cycle lengthen as the client-base for Internet professional services has shifted towards larger corporate buyers with increasingly complex needs,” said Dean Hopkins, president and chief executive officer of Cyberplex. “In response to these rapidly changing conditions in the market, we were faced with some difficult, but necessary choices, including the very painful decision to reduce our current workforce.”
Whether or not Cyberplex’s cost-cutting measures will prove profitable remains to be seen. In recent months, analysts have dropped their revenue forecasts for the company as the dot-com meltdown has lowered the demand for the installation of Internet systems and similar professional services.