Internet and interactive TV provider WorldGate Communications sliced its its workforce 20% to conserve cash.
About 60 of the company's 300 employees were let got as the company aimed to shave $10 million from ongoing expenses. Chairman and founder Hal Krisbergh said the Worldgate had $46 million in the bank, enough to carry Worldgate through 2002, when Krisbergh expects to be showing steady profits. However, "that didn't leam any room for hiccuping," Krisbergh said. The cuts came pretty much across the board. "When you're growing at the rate we have been you pick up a lot of inefficiencies," Krisbergh said.
For example, the company had three different groups quality-checking parts of Worldgate's software. That's been consolidated into one group.
- John Higgins