LAS VEGAS October 25, 2001 According to the Associated Press, the struggling Las Vegas-based tech company PurchasePro faced more woes on Tuesday when it eliminated half of its work force, cut managers' salaries and closed the majority of its offices.
In its heyday, PurchasePro, a provider of online marketplaces, profited from the e-marketplace explosion. Now, however, the decline of e-marketplace popularity, coupled with the current economic slump, has caused repeated downsizing and restructuring at the company.
Company officials cited the economic downturn as the reason for the cuts, but said in a statement that the measures would mean an annual savings of more than $14 million.
Company spokesman Steven Stern said PurchasePro laid off 125 workers, including senior management, to reduce its total head count to 125. This number is down from 600 employees at its height. "We're lean, but we certainly have enough to service what we're doing, maintain our product and continue to develop it," Stern said. "We don't anticipate any more layoffs."
The company also said it cut senior management salaries by more than 55 percent and reduced its facilities by 81 percent.
The changes have signaled more executive shuffling. The company's chief operating officer, Allen Winder, resigned Tuesday.
The company's shares have plummeted from more than $80 in December 1999 to close at 56 cents Tuesday on the Nasdaq Stock Market.