ALAMEDA, Calif.—Following the trend of many other wireless data companies in recent weeks, mobile data infrastructure provider Geoworks Corp. said it will cut its work force by 45 percent and will no longer offer revenue guidance to investors.
The company cited current market uncertainty and lack of market visibility as the reasons behind cutting the 70 positions, which are part of a larger cost-cutting effort. Geoworks said the measures would produce operating expense savings in the range of $2.5 to $3 million per quarter.
“Technology spending by wireless carriers has been severely impacted by economic conditions over the last several quarters. In particular, we are seeing wireless carriers delay buying decisions for next-generation infrastructure products and services. As a result, we believe it is prudent to act decisively to conserve company resources. By supporting our current customers and partners through a difficult time and focusing on our core technologies, while deferring other activities, we believe Geoworks can weather this storm and be in position with a strong product and services offering when the market begins to strengthen,” said Dave Grannan, president and chief executive officer of Geoworks.
The company also announced that for its second fiscal quarter ended Sept. 30, 2001, Geoworks expects to report revenue between $2 and $2.3 million.
