Verio Downsizes Following Demand
Slowing demand for IT services has prompted NTT Verio to close some 25 data centers and lay off 750 of its 3,000 employees.Slowing demand for IT services has prompted NTT Verio to close some 25 data centers and lay off 750 of its 3,000 employees. The decision follows a continuing slump in network services demand. Verio executives said the facility closures and layoffs are aimed at getting Verio to profitability earlier. The company is also aiming to develop a sharper focus on large enterprise customers.
"Like everybody else in the industry right now, were experiencing an economic slowdown," said Justin Jaschke, NTT Verio chief executive and director. "Partly its a dot-com phenomenon, but the economy in general is sluggish and companies are holding back on IT expenditures. Growth rates have slowed and we need to hold back on expenses to balance that."