Dec. 5, 2001 -- Managed hosting provider Inflow Inc. has reduced its staff by 15 percent, eliminating 85 jobs as part of its effort to reach profitability next year.
The company also said that its Austin, Texas data center is now cash-flow positive, with more than 60 customers online.
Today's streamlining leaves Inflow with about 400 employees. The company operates 18 facilities representing more than 600,000 square feet of colocation and hosting space. Inflow previously reduced staff in July, when it offered a voluntary severance package to some employees at its headquarters.
"Inflow continues to grow its business in order to reach profitability," said a spokesperson for Inflow. "While the reduction in force is not something we thought we would have to do, it seems to be minimal compared to the rest of the industry."
The Denver-based managed hosting provider has raised $110 million this year in two separate fundings, and now has more than 650 customers. Among the centers faring well in recent quarters has been the 20,000 square foot facility in Austin, a major second-tier technology hub.
"The Austin IDC's EBITDA positive milestone is another step in Inflow's steady march toward profitability," said Jim McHose, Inflow chief financial officer. "This keeps us on our path to profitability in 2002 and is consistent with our overall business plan."