eliminated 85 jobs today as part of a cost-cutting move and said Chief Financial Officer Alan Koslow will resign at the end of the month.
The company plans to shut down operations at an off-line direct marketing facility next month, which will affect an additional 56 people.
Koslow, who also serves as general counsel, will resign, effective Dec. 31, but will remain with the company for an additional month in a transitional role. Network Commerce, a technology infrastructure and services company based in Seattle, said Stephen Smith, vice president of finance, will serve as interim financial chief while the company searches for a permanent replacement.
Network Commerce expects its cost-cutting measures to result in savings of $40 million in 2001. The job cuts are across the board at all of the company's locations. The company also expects a pro forma loss of about $15 million for 2001, compared with a previously expected loss of $27 million. The company expects to be profitable, on a pro forma basis, in the third quarter of 2001, a quarter earlier than previously forecast. The company also sees revenue of $150 million for 2001.
Network Commerce recently rose 13 cents, or 11.1%, to $1.28 in afternoon