Verity to restructure and downsize
Verity, looking to shore up its operations, announces plans to cut 15 percent of its worldwide workforce and restructure its operations.
The search-and-retrieval applications provider plans to cut about 45 positions, but does not anticipate a restructuring charge, Gary Sbona, Verity's chief executive, said today.
"After reviewing the company's operations and strategy, it was clear that the company needed to focus and that its efforts were being diluted by too many markets and products," said Sbona. "We were just all over the place, and in too many things."
He added the company is refocusing on its core original equipment manufacturing and enterprise software businesses.
Under the restructuring, the company will consolidate its separate sales groups into one worldwide sales organization; relocate portions of its customer support operation that currently are spread across several different facilities into its Calgary, Canada, software development center; and consolidate its research and development projects and resources.
Sbona said Verity's IntelliServe is the only area the company is considering spinning off. IntelliServe is an application that connects people with the information they are seeking while they are working.
This reorganization comes on the heels of a management shakeup that lead to the ouster of Verity's chief executive last month and the resignation of its chief financial officer earlier this month.
Meanwhile, Verity reported a widening first-quarter loss when it reported its results last month, posting a $9.8 million loss, compared with $1.3 million a year ago. Revenues for the quarter fell 39 percent from year-ago figures, to $5.3 million.