Sapient Cuts Staff, Loses CFO
Following days of rumors, Sapient Corp. this morning laid off more than 500 employees and bid goodbye to its chief financial officer.Following days of rumors, Sapient Corp. this morning laid off more than 500 employees and bid goodbye to its chief financial officer. The moves come less than a month after the Cambridge, Mass., Web integrator reported dismal annual revenues that dropped 34 percent from the previous year and resulted in a $53.5 million loss. The cost-cutting layoffs will reduce the number of consultants by 415, or 22 percent. Sapient will also trim 130 administrative staff positions. The cuts come mostly from Sapients North American staff. A company spokesman said Sapient will be consolidating office space, but added that the company will keep all of its 17 international locations open. The move mirrors a similar layoff of 390 workers last summer that included the expansion of the firms operations in India.
According to company officials, Sapient will take a $50 million restructuring charge in the first quarter of 2002 as a result of expenses related to the job cuts. Despite trimming costs by cutting jobs, the firm still expects to lose money for the first quarter of 2002.