While the company reported that they were on track to reach profitability with their current cash reserves at the end of Q4, the softening market has forced Kirkland-based ImageX.com, Inc. to set up a series of initiatives aimed at reducing operating expenses in the first quarter and for the remainder of 2001.
These initiatives include a 17 percent reduction in staffing across all areas of the Web-enabled design and printing services company, as well as corresponding nonstaff cost reductions and consolidation of operational activities.
The company cited weakening general economic conditions and the announcement of scaled-back print e-procurement activities by several of the company’s major customers as the major factors behind its latest cost-cutting initiatives.
Officials at ImageX.com believe these measures, when added to the closure of the marketplace operations of PrintBid.com earlier in the quarter will reduce ImageX.com’s cash operating costs by more than $10 million during 2001.
“We believe that these actions will assure the company’s continued success and long-term viability,” said Rich Begert, president and chief executive officer. “We are taking swift, decisive action to address the current economic environment and simultaneously provide excellent service to our customers.”
ImageX.com also announced that it expects to report first-quarter 2001 revenues of $14 million to $15 million, less than the companies $20.1 million expectations set during its fourth-quarter 2000 conference call. Revenue for full-year 2001 is also expected to be less than the $90 million previously expected.