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Genuity Inc., creator of the Black Rocket Network Services Platform for building e-business Web sites, is slashing its U.S. work force by 24 percent after announcing yesterday that it had a big loss in the third quarter.
Despite posting $302 million in revenues for the quarter ended Sept. 30, the Woburn, Mass., company recorded a quarterly loss of $153 million, or 31 cents per share – a 22 percent improvement from the previous quarter.
As part of the company-wide restructuring, Genuity officials will release between 1,100 and 1,200 full-time and contract employees, which works out to about 22 percent of the companys full-time employees and about half of its contractors, according to a company spokesperson.
Likewise, the company will consolidate several business units.
The majority of staff reductions will occur in the fourth quarter, with a small number taking place in the first quarter of next year, according to officials. With the layoffs, Genuity officials expect to chop $80 million in labor expenses.
This is not the first time Genuity has reduced its work force. In May, after disappointing first quarter earnings, the company laid off about 16 percent of its workforce, cutting about $70 million in labor expenses.
All tolled, Genuity has cut about $150 million in labor expenses this year.
Genuity officials say they are on track to achieving their financial goals, including achieving positive gross margin in the fourth quarter.