Reuters news service reported the company said it would cut 40 percent of its staff of more than 200 as it discontinues certain operations and consolidates its main businesses. Revenues for the second quarter are expected to be about $5 million, with one-time charges during the quarter.
The near-term effects of the restructuring are expected to push quarterly revenues for the balance of fiscal 2000 significantly lower than original projections. Staff cuts, as well as InsWeb’s more than $75 million in cash and short-term investments as of the end of March, should give it enough cash to cover operations through 2003.
The company expects to begin generating profits by 2003. In addition, Mark Guthrie, 39, was promoted to president, in addition to his role as chief operating officer.
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