CyberSource Lays Off 70 More Workers
The risk management and electronic payment solutions provider Wednesday said the 70 layoffs combined with 30 layoffs announced in November means a total of 100 jobs cut in the companys fourth quarter. CyberSource now has about 175 employees.
Among the casualties is James Buckley, CyberSources chief financial officer, who will be replaced by Steve Pellizzer as vice president of finance. Formerly corporate controller, Pellizzer joined CyberSource in 1999 and had previously worked at PriceWaterhouseCoopers LLP. Buckley will leave the company at the end of January.
"While we have made good progress in reducing our expenses during 2001, the completion of a number of key development projects and our efforts to continually streamline operations allowed us to further reduce our expenses for 2002," said Bill McKiernan, chairman and CEO of CyberSource in a statement.
"These most recent measures are the actions we believe will position the company to generate earnings on an EBITDA [earnings before interest, taxes, depreciation and amortization] basis in the latter part of 2002," McKiernan said. "Further, we will continue to make every effort to increase shareholder value by leveraging our full range of leading-edge products, services and technologies, and continue to pursue strategic relationships to drive significant incremental revenue."
McKiernan said CyberSource has completed projects to increase the capacity of its transaction services, as well as improved the customer reporting systems and introduced a Sun Microsystems Inc. Solaris version of the CyberSource Payment Manager software.
In addition, as another cost-cutting measure, CyberSource officials said the company is giving up about 40 percent of the 72,000 square feet in its headquarters building. This, in conjunction with consolidating its software development and support operations in Mountain View, will enable the company to better align revenues and expenses, the officials said.
CyberSource said it will take a yet-to-be-determined one-time charge in the fourth quarter to cover the job cuts and expenses related to consolidating excess facilities in St. Louis and Mountain View.