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More Layoffs At Zefer; CEO's Departure Confirmed

By Amy Rogers
August 02, 2001    10:49 AM ET

Zefer sustained another round of layoffs this week.

Some 50 employees were affected, according to sources, some of whom were among those given pink slips.

In addition, Zefer officials confirmed this week that CEO Bill Seibel left the company last week.

While he continues to hold the chairman title, and a spokesperson characterized Seibel's departure as a resignation, sources at Zefer say Seibel was asked to step down by the troubled e-business services firm's board of directors.

Zefer is said to be in talks with partners NEC and Sun to buy some or all of its customer accounts, equipment and other assets.

NEC and Sun have already invested resources in Zefer. In May, Sun and Zefer opened an iForce Ready Center on the Zefer campus here, and in March, NEC contributed an undisclosed portion of a $48 million investment to help Zefer soldier through the difficult economy. GTCR Golder Rauner, Zefer's venture-funding partner, was the other source of the money.

Zefer had a round of layoffs in March and another in April. Each time, approximately 100 people were let go.

Zefer managing partner John Kelly is said by sources to be overseeing the strategy to sell off pieces of the company.

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