The online postage company is laying off 240 full-time, part-time and contract employees across all locations, including its Santa Monica, Calif., headquarters and its offices in Bellevue, Wash., the company said Monday. The move is part of Stamps.com's plan to streamline operations, the company said.
The news gave Stamps.com's sagging shares an early boost. In morning trading, shares of the company rose 28 cents, or 10 percent, to $3 per share--still a far cry from its 52-week high of $98.50. Shares have hit a 52-week low of $2.31.
The layoffs follow closely on the heels of the departure of the company's chief executive, John Payne, which itself followed, by three days, the resignations of Stamps.com's president, chief financial officer and comptroller.
"Although we have nearly $300 million in cash reserves, today's competitive environment demands that we operate our business at maximum efficiency," Stamps.com chairman Marvin Runyon said in a statement.
The market for online postage services, like many Internet-related businesses, has taken a beating on Wall Street. Stamps.com's shares have languished since the early part of this year, when they reached an all-time high of $98.50.