DALLAS—In its ongoing effort to pull itself out of bankruptcy, WebLink Wireless Inc. announced several reconstruction-and-reduction moves it plans to make.
The company will shut down its San Antonio, Texas, call center within the next 60 days, transferring that call load to Amarillo and Dallas call centers, to contain costs and achieve EBITDA targets. In addition, WebLink’s Garland, Texas, distribution center will be relocated to the company’s operations facility in Plano, Texas, reducing the size of its distribution center and headquarters staff. In all, approximately 20 percent of WebLink’s workforce, or 232 employees will be fired—151 from the San Antonio call center.
WebLink said it should see a $1.3 million cash severance expense associated with the layoffs in its third quarter results, and will not see the economic benefits until the first quarter 2002.
Separately, WebLink’s right to propose a reorganization plan in its Chapter 11 bankruptcy proceeding was recently extended until at least December 17, 2001.
