E-gov firm govWorks cuts staff

Fledgling e-government company govWorks Inc. laid off an unspecified number

of employees last week, the second time in the past year that the company

has let staff go.

Industry rumors indicate that the company was down to about 50 workers from

nearly 300 earlier in the year, company officials said Friday that all govWorks

operations remain intact.

"We have completed a restructuring process that had been ongoing for a number

of months...and on [Nov. 13] we made a number of layoffs that completed

that restructuring," said David Camp, vice president of marketing for the

New York City-based company.

Founded in 1998, govWorks is an e-government company that enables local

governments to offer online services, including securing permits or paying

taxes.

GovWorks has strategic partnerships with American Management Systems Inc.,

and Arthur Andersen. The company also entered into partnerships a year ago

with the U.S. Conference of Mayors and the International City/County Management

Association. The company also has a number of local government customers.

Officials at AMS, the USCM and the ICMA could not be reached for comment

on Friday.

Camp would not specify the number of employees that were let go, but he

did state emphatically that the company is not closing, and any reports

to the contrary were "ridiculous and irresponsible."

"This is an effort to further streamline our operations and sharpen our

focus on our e-government software and transaction services business," Camp

said, adding that the company was not necessarily seeking a buyer, but is

"always evaluating its strategic options."

Nicole Corvette Hockin, spokeswoman for EzGov Inc. — one of govWorks' competitors

in the e-government arena — declined to comment on the rumored layoffs.

She did say that the e-government market remains strong.

"This e-government opportunity is enormous for those companies that have

the technology to meet the need of governments and can deliver on their

promises," she said. "It's not a time for governments to become concerned."

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