Sapient to Dismiss 720

BOSTON — Sapient, the Internet consulting company, this morning announced it will reduce its global workforce by 20 percent.

About 720 employees will lose their jobs, including 70 in the Sydney, Australia office, which will be closed. In addition, the Cambridge, Mass.-based company will consolidate office space in several other cities that currently use multiple locations. The cutbacks will not affect the company’s European operations, which includes offices in London, Milan and Munich. Revenues are growing in Europe and the company expects to expand operations there.

In reducing its U.S. and Australian workforce, Sapient expects to save
pproximately $5 million in the first quarter 2001 and $60-65 million annually. Even with the cost reduction, it expects first quarter revenue to be about 20 percent lower than the analyst consensus estimate of $136 million.

At press time, Sapient stock was trading on the Nasdaq at $10. The 52-week high was $74.53, the low was $8.94