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Saturday, March 03, 2001

Digineer cuts 19 of 131 jobs




By John J. Byczkowski
The Cincinnati Enquirer

        Digineer Inc. of Deerfield Township laid off 17 percent of its work force this week, as it tries to conserve cash and tweak its business strategy.

        The software company, whose major customers are in the health care industry, cut 19 of its 131 workers this week. The company had up to 140 employees in 2000, and earlier cuts were made through attrition.

        Workers cut included programmers, human resources staff, administrative aides and quality assurance. They received a severance package including pay and outplacement services.

        Digineer was caught up in last year's “tech wreck,” a dose of reality delivered to high-tech companies by the stock market. There is less Internet-related business, and “old economy” companies with big plans to go online have cut back and delayed implementation.

        Chief executive Bob Beech said Digineer has seen potential clients taking longer to make decisions. He said Digineer needs “to work with greater sophistication for much larger clients.”

        The company is cutting back on its “professional services” area, which provides software consulting and custom design for clients. Digineer is emphasizing development of proprietary software products.

        Digineer secured $20 million in venture funding in April 2000, and in December moved into a new headquarters building.

        Mr. Beech said “the bulk” of the $20 million is still in the bank. New products should be unveiled soon, he said.

       



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