When times are tough, a person’s got to save money; some people sell their stuff, others crash on friends’ couches. Fast Search & Transfer plans to fire 148 employees, or about 20 percent of the company’s workforce.
That sounds drastic, and, well, it is. But so are Fast’s problems. “Q2 results came in at $34 million – which is less than the same quarter last year (Q2 2006 saw a revenue of $39 million),” reports Adriaan Bloem on CMS Watch. “Instead of an optimistic growth of about 40%, it’s actually down 12%, and means the company is now losing money.”
Also, Fast just completed its $23 million acquisition of RetrievalWare, and while the move was voluntary, it’s got to hurt the old bottom line.
So, is axing 128 folks the best way to accumulate money? That remains to be seen, but Bloem doesn’t think things are looking good. “Will this affect professional services, which as readers of the Enterprise Search Report will know, we already described as somewhat overstrained? Will you lose the comfort of an office near you? And as much as sales people may seem tangential to your success, if you’re in the middle of a selection or proof-of-concept, you’re not likely to enjoy a stranger answering the phone.”
I’ll give credit to Search Engine Journal’s Loren Baker for spotting this story. Oh, and a money-saving note to Fast: a lot of store-brand food tastes just fine.
