Woburn, MA May 16, 2001 As iSource reported previously, sometimes bad news affects the people who cover the news almost as much as it does those who create news. Being the bearer of bad tidings is a necessary evil, and an unpleasant one. But cover these issues we must, if we are to be complete in our coverage.
The latest bit of bad news comes from dynamic-pricing firm FairMarket, which recently announced a workforce reduction of 40 people, effective immediately. The
company also announced that it accepted the resignation of its CEO and president, Eileen Rudden. FairMarket's board of directors has appointed Janet Smith, its CFO, as interim president.
"The workforce reduction is a difficult step but one that's necessary to balance our
company's resources with current market demands," Smith said. "We've determined that our post-reduction workforce level enables us to continue providing our customers with superior solutions, while putting the company in a better position to achieve our previously stated commitment of operating cash flow break-even by Q1 2002."
FairMarket also announced it will close its Australian office, transferring service for those customers to its U.S. operation. Related to workforce and other restructuring initiatives, the company expects to incur a charge of approximately $1.6 million in
the second quarter.
In addition, the company announced today the resignation of board member Richard Pallan, and the board of directors indicated that FairMarket has initiated the search for a new CEO.
Smith added that the company's strong financial position, as well as blue-chip customers and partners, position the company to stay on track. "With a cash
balance at the end of the past quarter of approximately $71 million, a reduced cash burn rate, a talented workforce of over 100 employees and industry-leading technology, we are well-positioned for future growth and profitability," she said.