LAS VEGAS — PurchasePro.com Inc., in a move to return to profitability, said it will cut 50% of its work force to under 300 people and realign its senior management team.
The provider of electronic business-to-business services on Monday also announced that its president, Shawn McGhee, resigned effective June 30 to accept another position.
PurchasePro, a one-time hot Internet upstart, is under pressure to perform following an embarrassing string of first-quarter earnings adjustments. It is also the target of multiple shareholder lawsuits.
Since April, 17 separate lawsuits have been filed, most of them alleging that Charles Johnson Jr., the company’s co-founder and former chief executive, and other company officials had made misleading positive statements about the company’s finances in an effort to artificially prop up the stock. In late May, Mr. Johnson resigned from the company.
As part of its new reorganization, PurchasePro (PPRO) said it plans to implement cost-control programs and focus on selling software products to increase revenue.
The company’s senior management team consists of recently appointed Chief Operating Officer Allen Winder; CEO Richard Clemmer; Jeff Anderson, senior vice president of strategic alliances; Chris Benyo, senior vice president of marketing; and Dale Boeth, senior vice president of consulting services.
“This realignment will provide better products and services to our customers,” Mr. Clemmer, who was named CEO last month, said in a prepared statement. “We are embarking on a specific network services initiative, focusing on the continued build out and population of our industry leading e-commerce network and related services.”
In addition, PurchasePro said it created a new consulting services group that will focus on integration products and the custom development needs of its customers.
PurchasePro said it plans to issue second-quarter guidance at a conference call scheduled for Tuesday.
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