Orem eCommerce company cuts 60 workers

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.

After the layoffs, which include management executives, clerical and sales staff, the eCommerce company will have 250 employees. This is the second major layoff 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 ended March 31, as a result of this reduction.

"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 downsizing the company."

Korn said the company began notifying the affected workers today. He could not specify immediately if they will get severance packages or job placement help. 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 today.

"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. This reduction is one of many actions the company is taking to improve operating results," he said.

"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 less 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."