Cambridge, Mass. - 24 October 2001
Bitstream has announced a restructuring package, involving layoffs and salary cuts for executives.
Bitstream Inc. BITS announced today that it has proactively adopted certain restructuring initiatives to help accelerate the date by which the company can achieve profitability. These initiatives include a voluntary reduction in executive salaries, a reduction in outside consulting and other operational expenses, and a reduction of its workforce by approximately 20% effective October 31, 2001. Estimated cost savings are expected to exceed $1,100,000 annually.
According to Microsoft Money Central Bitstream currently employs sixty-five people. In addition, consultants including freelance type engineers Laurence Penney and Adam Twardoch, work for them on various projects.
The press release also quotes company CEO Charles Ying, who remains positive…
We believe that we have the resources necessary to generate short-term revenue for all of our products, as well as to successfully complete our current long-term development projects
26 October 2001 - update
We contacted Laurence Penney and Adam Twardoch who act as consultants on Bitstream's MyFonts.com e-commerce site. They both report that they are being retained by Bitstream.
Bitstream's Jim Lyles dropped us a line to let us know that the company's type and type technology division was largely unaffected by the cuts.
…the Type division, including Custom Products, R&D, the New Font
Collection, retail and OEM sales, and online sales are financially
healthy and that the executive team continues to be behind us 100%. We
are very confident about our future business and look forward to an
exciting 2002, featuring many new font releases and new font products
(including OpenType fonts, for those of you that are interested).
article posted 25 October 2001 and last updated 26 October 2001.