TORONTO-Telematics provider AirIQ Inc. cut its work force by 13 percent and shuffled its front office in an effort to “accelerate profitability.”
The company said it will eliminate about 20 jobs, which will reduce its expenses by about $20 million. AirIQ will take a charge of $250,000 in the first quarter of 2006 as a result of the cuts.
All but one of the job cuts will come from its two California offices; AirIQ is based in Pickering, Ontario. David Brandos and Colin Zvaniga were also tapped to join the company’s senior executive team as part of the restructuring.
“Several achievements during 2005 have enabled us to take this integration step signaling a shift from a development phase to a deliver phase,” said Chief Executive Officer Don Simmonds.
AirIQ posted a loss of $1.9 million, or 2 cents a share, during the quarter ending Sept. 30. The company lost $2.9 million, or 3 cents a share, during the same period in 2004.
The layoffs are not expected to affect service to AirIQ’s 200,000 existing subscribers, the company said.
Shares of AirIQ dipped on the news, falling 3 cents to a 52-week low of 23 cents per share on the Toronto Stock Exchange before rebounding slightly.
