A reorganization of its sales force and the slowdown in the economy has prompted Forrester Research of Cambridge, Mass. to eliminate 111 employees, approximately 15% of its workforce worldwide, according to a statement issued yesterday by George F. Colony, Forrester's chairman and CEO.
A reorganization of the firm's sales force resulted in 67 of the cuts, Colony said in a conference call held yesterday. He blamed the other 44 job cuts in research and client services on the weak economy and the smaller sales force, which needs less support staff, he said.
'First, we're reorganizing our sales team around a new vertical focus that addresses the need for increased specialization in a more complex market,' Colony said. 'Second, the workforce reduction is a move driven by a slower economy.'
This was the first time in Forrester's 18-year history that layoffs have occurred, Colony said.
The new sales force is organized into five vertical markets: financial services, retail, media, technology and communications, and manufacturing, he said. Prior to the reorganization, the North American sales force was organized on a geographical basis.
The company expects to report its second quarter results July 18, 2001.