NaviSite to fire 126, says 7 of 13 executives quit

ANDOVER, Mass. (Bloomberg) — NaviSite Inc., whose shares have fallen 98 percent
in the last year, plans to fire 126 employees, or about a fourth of its workforce,
to cut costs, and said seven of its 13 vice presidents had quit. The executives
who quit worked in sales, human resources, strategic planning, marketing and other
areas, the Andover, Massachusetts-based company said in a statement distributed
by Business Wire. NaviSite, which hosts Web sites for companies, in March hired
Goldman, Sachs & Co. to help explore options that could include an acquisition.
Shares of NaviSite’s rivals, including Exodus Communications Inc., have plummeted
as companies delay or cancel spending on technology-related projects, and as dot-com
customers have gone out of business. NaviSite had 562 employees as of April 30,
according to a regulatory filing. CMGI Inc. owned about 67 percent of NaviSite
as of March.