MarchFirst Plans 550 More Job Cuts
CHICAGO (AP) _ The Internet consulting firm MarchFirst Inc. plans to cut 550 jobs, or 6.7 percent of its work force, in its third round of layoffs since November, and ``dramatically″ cut discretionary spending until its operations become profitable.
Tuesday’s announcement brings the total number of layoffs in the last three months to 1,750. The cuts included about 240 employees at MarchFirst’s corporate and regional offices in Chicago. The company employs about 8,150 people before the latest cuts.
The company also plans to close its Montreal office, affecting eight people, and consolidate its Pittsburgh operations into its Cleveland office.
The latest cuts were due to an economic slowdown, MarchFirst president and chief operating officer Tom Metz said, warning that more layoffs may be necessary if companies continue to ease up on technology initiatives.
In November, the company announced the layoff of 1,000 employees to try to save $100 million, then earlier this month said it would cut more jobs to meet that goal.
Metz said the company has refocused its business on large and midsize firms.
Internet consultants have suffered from the failure of dot-com clients and the reduction in technology-related projects among more established clients.