US Interactive announces wider loss, layoffs

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Internet professional services company US Interactive, Philadelphia, posted a wider-than-expected third-quarter operating loss, and said it plans to lay off about 28% of its work force. The company also named its recently appointed president, Mohan Uttarwar, as its CEO. Mr. Uttarwar, 42, succeeds William Jennings, who has been appointed chairman, the company said. US Interactive reported an operating loss of $45.7 million for the quarter that ended Sept. 30 despite revenue that nearly doubled to $17.8 million. That's 10 times its operating loss of $4.1 million in the same period last year. The company said it plans to reduce costs by closing offices and cutting about 28% of its work force during the next two months, charges that will be taken in fourth-quarter results. US Interactive did not disclose the amount of the charge or the actual number of jobs to be cut. Also, the company announced it plans to move its headquarters to Cupertino, Calif., by March 1.

Copyright November 2000, Crain Communications Inc.

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