Sapient Plans Layoffs; CFO Resigns

Sapient

Under the move, the Cambridge-based e-services firm is slated to cut 415 professional and 130 administrative staff. The restructuring also is expected to include office consolidation, but the company said it will continue to work in all cities where it now has offices.

Also on Tuesday, Sapient said CFO Edward Goldfinger resigned from the company to join a Boston-based firm that tests and monitors Web, voice and network applications. Susan Johnson, senior vice president and Sapient CFO from 1994 to 1999, will serve as acting CFO until a replacement for Goldfinger is found, the company said.

During first-quarter 2002, Sapient expects to take a restructuring charge of $50 million to $55 million for employee severance and office consolidation costs. Sapient said its actions, which will primarily affect its North American workforce, stand to reduce the company's cost structure to about $60 million per quarter over the next six months.

Sapient forecasts first-quarter revenue to meet or be slightly below previous guidance of $55 million to $60 million, with the potential for a slightly higher pro forma loss of 11 cents to 13 cents per share. Sapient closed trading Monday at $4.13 per share, and its shares rose to $4.23 in Tuesday afternoon trading.