After staying mum on its future for the past week, Internet consulting firm MarchFirst has announced it will lay off 30 per cent of its workforce, or 1700 employees, sell many of its assets to Internet holding company Divine, and close its Australian operations in an effort to pay off a $US53 million loan.
The troubled integrator is selling its Central Region business unit and other offices to Divine InterVentures. A week earlier, trading of MarchFirst shares was halted by the Nasdaq Stock Exchange after reports the company would lay off 3000 of its 7200-person staff and was considering splitting into three regional units, each funded by different outside investors.
The company is not the first Web consultancy to close down its Australian offices, with Sapient recently laying off 70 staff after exiting the Australian market.
