724 Solutions cuts workforce by 350

Wireless and Internet infrastructure provider 724 Solutions Inc. is cutting 350 jobs in a bid to compensate for what the company calls a “challenging” economic environment.

Toronto-based 724 Solutions says the job reductions will save it nearly $65 million annually, savings the company expects to realize in the first quarter of 2002. The announcement followed the company’s third quarter results, which saw it record revenue of US$10 million in the period ending Sept. 30.

“Faced with today’s environment we must take difficult, but decisive actions,” said John Sims, CEO of 724 Solutions, in a prepared press statement.

“We remain strongly committed to our success in the mobile transaction market. We believe that these actions will allow us to reduce costs without affecting our strategic priorities.”

Yesterday’s announcement marks the second round of job cuts for 724. Last November, the company acquired Austin, Tex.-based Tantau Software. Sims, former chief of Tantau, landed at the helm of the combined company. Ninety jobs were slashed in the following consolidation.

724 Solutions officials say third quarter results and more detailed company results will be made available on Oct. 25.

724 Solutions focuses on applications aimed at the financial services sector, and helped establish the Bank of Montreal’s wireless banking service, Veev.

724 Solutions Inc. is at http://www.724.com