In its second-largest acquisition, Amazon buys the company for $970 million.
FairMarket is cutting 40 jobs and CEO Eileen Rudden and a board member have resigned amid the restructuring.
Woburn, Mass.-based FairMarket, a provider of marketing solutions and online selling incorporating dynamic pricing, announced today it is cutting 40 jobs in order to meet its goal of operating cash flow break even by Q1 2002. “The workforce reduction is a difficult step but necessary to balance our company’s resources with current market demands,” Janet Smith, CFO and interim president, said in a statement.
The company also announced that CEO Eileen Rudden and board member Richard Pallan have resigned. The company also is closing its Australian office, transferring service to those customers to its U.S. operation. FairMarket, which says it had a cash balance of $71 million at the end of the last quarter and a reduced cash burn rate, expects to stay in business. FairMarket most recently signed a deal to help Major League Baseball’s online division auction off baseball memorabilia. FairMarket also works with eBay to help retailers liquidate goods through the online auction site.
The company made cuts in such areas as general administration, end-user customer service and marketing, while keeping customer-related departments, such as engineering and account management in tact, says Bryan Semple, vice president of corporate development. After the cuts, FairMarket has just over 100 employees.