E-gov firm govWorks cuts staff
- By Dan Caterinicchia, Dan Caterinicchia, Dibya Sarkar
- Nov 19, 2000
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
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
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."