I3 Mobile Inc. executives confirmed late last week the company laid off about 20 percent of its work force as part of a streamlining effort, a move prompted by flagging profits.
“In order to conserve our resources we’ve decided to eliminate some positions,” said Michael Forbes, vice president of marketing at i3 Mobile, which provides data services to mobile devices.
Forbes said 28 employees out of 142 were laid off as part of the streamlining effort. Forbes said the company also plans to focus on supporting its current line of products and continuing to build its next generation of products, while scaling back on trade advertisements and trade show participation.
The move comes just a month after the company lowered its earnings expectations to about $1 million in revenues with a net loss of about $9.5 million.
I3 Mobile executives attributed the lowered expectations to the loss of development revenues and users from TSR Wireless L.L.C.’s bankruptcy and delays in distributor product launches.
I3 Mobile said it expects about $6 million in revenues this year and a net loss of about $39 million.
The company’s stocks closed at $3 per share last week, down from a 52-week high of about $33.
