Stamford, Conn.-based META Group Inc.
“While this was an extremely difficult decision, we felt that the workforce reduction was necessary to continue aligning our resources with current market demand,” said Dale Kutnick, chief executive officer and co-research director META Group. “In 2001, we made great strides in improving our cash position and achieving overall stability. Unfortunately, these reductions were necessary as part of our continuing plan to return it to profitability.”
META Group said it has also reorganized its Sales and Client Services divisions, “to better align resources along distinct client teams,” as part of the restructuring.
META Group is not the first research firm to belly up to a restructuring as a result of the recession. Last month, Forrester Research Friday became the latest IT research and consulting firm to announce a restructuring. META said it eliminated 43 jobs across its organization Wednesday, representing 7 percent of its workforce.
The company said the reductions will save it about $4.2 million in 2002, including $3.8 million in payroll and related benefits savings. It will, however, take a cash charge of about $250,000 in the first quarter as a result of the reductions. announced its restructuring, which included the elimination of 126 jobs (about 22 percent of its workforce).
META Group announced its restructuring at the same time it notified investors and analysts that it expects to record about $6.2 million as a fourth-quarter 2001 non-operating impairment charge related to the write-down of some of its investments. The company plans to release its fourth quarter results on Feb. 21.
META Group Slashes Workforce
