MarchFirst continues cost-cutting with more layoffs

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Internet consulting company MarchFirst announced it will cut 550 jobs, effective immediately, in an attempt to cut spending until it reaches positive operating cash flow.

The Chicago-based company cut 200 jobs earlier this month and laid off 1,000 in November of last year. The latest round of layoffs leaves MarchFirst with about 7,600 employees. MarchFirst also will close or consolidate smaller offices in Montreal, Canada and Pittsburgh, Pa., and cut corporate expenses to about 10 percent of sales. MarchFirst also will continue to evaluate opportunities for selling non-core assets as well.The company is not ruling out continued layoffs through 2001 as it seeks to bring its staffing levels in line with current market conditions, a MarchFirst spokeswoman said. "We have achieved our initial goals of reaching $100 million in savings with the 200 layoffs in early January," she said. "But we're in a challenging market and we have to take decisive action to keep our organization healthy and on a positive track for success."

Copyright January 2001, Crain Communications Inc.

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