Citing slower sales as a result of the deepening recession, iMergent Inc. of Orem is laying off 25 percent of its work force, or about 60 workers, company officials announced Friday.

After the layoffs, which include management executives and clerical and sales workers, the e-commerce software seller will have 250 workers. This is the second round of layoffs implemented since December 2007, when the company cut one-fifth of its workforce to save about $1 million in operating expenses.

The company said it does not anticipate it will incur any associated charge in the third fiscal quarter ending March 31, as a result of Friday's announced layoffs.

"Today's layoffs are based on current economic conditions. We've been seeing lower quality credit prospects due to the economic slowdown," said Jeffrey Korn, iMergent's attorney. "Because we have fewer customers, we are therefore downsizing the company."

Korn said the company began notifying the affected workers Friday. He could not specify immediately if they will get severance packages or job placement assistance. He also couldn't specify if there are more layoffs to come.

"This action is a necessary response to current market conditions and our increased focus on the small to medium enterprise market," Steve Mihaylo, iMergent's chief executive officer, said in a statement Friday.

"Our employees are the heart of our organization, so it is with considerable reluctance that we are proceeding with this reduction. We will continue to monitor the demand environment for our products and services and make necessary adjustments to maintain our strategic focus and strengthen our competitive position," he said.

Mihaylo said the layoffs are one of many actions the company is taking to improve its bottom line.

"We are using these operating improvements as opportunities to implement some of the changes I believe are needed to improve our business model," Mihaylo said. "We are working to reach more highly qualified prospects as well as limiting sales efforts in markets where we have encountered fewer qualified prospects due to the current economic environment. We believe these improvements will lead to improved profitability. We also believe, once the effects of these improvements have been realized, there should be a reduction in legacy complaints from customers and reviews by regulatory agencies."

Since 2005, the company has been waging legal battles with regulators across the nation over issues including alleged consumer fraud and illegal insider trading. It was barred from doing business in several states including North Carolina -- one of its key markets -- after allegedly failing to live up to its claims that it could help people set up successful online businesses.

iMergent has since reached settlements with at least 10 states including the North Carolina Attorney General's Office last year, in which the company agreed to make restitution to the affected customers.

The North Carolina settlement was significant because lower-than-expected sales and an inability to do business in both North Carolina as well as California had resulted in the December 2007 layoffs. Earnings from the two states account for about 15 percent of iMergent's total revenues. The company is still barred from doing business in California and also Australia.

Shares of iMergent shed 38 cents, down nearly 7 percent, to close at $5.10 on Friday.