SAPIENT SLASHES 390 JOBS

Published on .

(July 2, 2001) -- Sapient, considered to be one of the sturdiest shops in the Internet professional services category, said today it would be reducing its staff by 390 people, or 14%.

The layoffs are one of a number of cost-cutting initiatives that will primarily affect the company's North American operations. The company plans to consolidate its office space in some North American cities, and it will no longer fund a game-development business.

Meanwhile, Sapient plans on expanding its operations in India, relocating approximately 60 of its consultants to its New Delhi office.

The company said it would take a $50 million restructuring charge in the third quarter, saving $13 million during that quarter and $60 million on an annualized basis. Sapient also said that it would miss the consensus estimates for third-quarter revenue of $90 million, expecting to post $87 million.

In other news, Executive Vice President Paul DiGiammarino will be leaving the company to pursue personal interests, Sapient had announced Friday. Mr. DiGiammarino had been responsible for the company's North American industry units. -- Catharine P. Taylor

Copyright July 2001, Crain Communications Inc.

In this article:
Most Popular