Mississauga, Ont.-based Kasten Chase Applied Research Ltd. announced on Monday that it is cutting its workforce by 25 per cent.
“Staffing reductions are being undertaken with a view to preserving the company’s core technological capabilities, while allowing for an increased focus on the marketing of its new data security solutions,” the company said in a statement.
About 21 employees were given pink slips on Monday, reducing the 85-member team to 64, said John Carlesso, investor relations with Kasten Chase.
The reduction in staff will likely cost the data security company about $1 million in one time expenses, eventually saving it about $500,000 per quarter and will assist the company in its objective of breaking even, Kasten Chase said.
In a statement Chief Executive Officer Paul Hyde cited that a weakened global economy and new enterprise investment in data security solutions being deferred for several quarters, “made it difficult for us to effectively forecast the timing of revenue with a high degree of confidence.”
He also said that Kasten Chase had reached a point of transition.
In a related release, the company also announced the departure of Jim Davies, president and chief operating officer, effective June 15, 2003. Hyde will continue as the CEO and will oversee the progression of the company through the restructuring, the company said.