IXL To Consolidate Offices; Lay Off 300 Employees

IXL To Consolidate Offices; Lay Off 300 Employees
Part of plans to merge with Scient
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By Marie Lingblom
CRN
Atlanta

11:29 AM EDT Thu. Sep. 27, 2001

E-services company iXL said late Wednesday it expects to lay off 300 employees as part of its plans to merge with New York-based Scient.

Atlanta-based iXL reported the layoffs are attributed, in part, from the consolidation of duplicate office space with Scient in Boston, Chicago, Dallas, New York, and London, according to company information.

Christopher Formant, CEO of iXL, said in a statement he expects the restructuring to result in cost savings of more than $100 million.

The two companies reached a definitive agreement on July 31 to merge and become one company, to be known as Scient, based in New York. The all-stock deal is expected to be complete by the end of the year.

IXL closed trading Wednesday at 20 cents per share; Scient closed at 30 cents per share.