January 26, 2009, 12:00 AM

Despite a strong year, ChannelAdvisor plans to cut work force by 19%

Although it showed strong 2008 gains in the value of merchandise sold by its retailer clients through e-marketplaces and Internet search engines, ChannelAdvisor says it will cut its work force this year by 19% because of the down economy.

Katie Evans

Managing Editor, International Research

Although it showed strong 2008 gains in the value of merchandise sold by its retailer clients through e-marketplaces and Internet search engines, ChannelAdvisor Corp. says it will cut its work force this year by 19% because of the down economy.

ChannelAdvisor CEO Scot Wingo says the company is moving to streamline operations “to better position the company for potentially deteriorating macroeconomic conditions.” After the cuts, ChannelAdvisor will have between 240 and 250 employees, a spokeswoman says.

The value of merchandise ChannelAdvisor helped retailers sell through e-marketplaces and Internet search engines rose to $775 million in the fourth quarter. For the full year 2008, gross merchandise value rose 34% year-over-year to $2.6 billion, the company says.

ChannelAdvisor, which has about 3,000 retailer clients, says the rise in gross merchandise value coincided with an average 7% rise in sales last year for its clients. ChannelAdvisor reported fourth quarter revenue of more than $10 million, resulting in its first full-quarter operating profit, Wingo says. For the full year, revenue rose 44% year-over-year to more than $35 million, it says.

“ChannelAdvisor had a solid quarter and we will continue to focus on profitability and growth in 2009,” Wingo says. “The restructuring steps we’re taking are designed to better position the company for potentially deteriorating macroeconomic conditions. These steps will lower our overall operating costs and enable us to weather the current economic storm.”

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