Insurance Management Solutions Group Cuts 10 Percent of Workforce

February 15, 2001

Insurance Management Solutions Group, a provider of business process outsourcing solutions serving insurance companies and financial institutions, announced that it has cut 53 jobs, constituting approximately 10 percent of its total workforce.

The reductions will represent savings of approximately $1.7 million in annual payroll and should have an immediate positive impact on the company’s cash flow. The reductions, which involved primarily information technology and claims administration, occurred in areas where processes could be combined to reduce overall expenses. The company also announced that it is exploring various other measures for reducing costs, including further reducing its sales and marketing expenses and re-evaluating its total space requirements in order to reduce total rent expenses.

The reductions in personnel other and cost-cutting measures, coupled with a much narrower focus of its business process outsourcing service offerings for the foreseeable future, are intended to enable the company to focus on profitability.

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