Struggling Internet professional services firm MarchFirst decimated the ranks of its workforce in an effort to cut costs, announcing around 1000 lay-offs earlier this week.
The move, which was prompted by weakness in the market and shifting client priorities, will save the company $US100 million annually, the company said in a statement. The lay-offs will take effect immediately and affect consultants with outdated specialisations, and field and corporate support staff.
The move will not affect service delivery to clients, the company said.
MarchFirst, created from technology consulting firm Whittman-Hart and Internet marketing consulting firm USWeb/CKS, laid off 260 employees over the first five months of 2000.
The company also announced it would postpone until November 28 a financial guidance call for analysts and the public scheduled this week. The company said it wanted to incorporate analysis from a recently-completed study of its global markets and business strategy into its 2001 business plan.
Over the course of the year, MarchFirst's market value has been steadily rolling downhill. The company's stock closed at $4.50 Monday, about one-twentieth of its 12-month high in December 1999. News of the layoff and guidance postponement drove share down 13.19 per cent from Friday's close.