Onvia.com To Cut Work Force

SEATTLE (AP) â€” Onvia.com Inc. said Tuesday it will cut 180 jobs as it lets Firstsource Corp. take over the sale of its online goods and services. <br><br>Onvia is a Seattle-based business-to-business

Wednesday, December 20th 2000, 12:00 am

By: News On 6

SEATTLE (AP) â€” Onvia.com Inc. said Tuesday it will cut 180 jobs as it lets Firstsource Corp. take over the sale of its online goods and services.

Onvia is a Seattle-based business-to-business marketplace for small-business buyers and sellers. It will employ 203 people after the work force reduction, said Gretchen Sorensen, vice president for corporate affairs.

Under the agreement, Onvia will invest $2 million in Firstsource, a closely held e-business concern based in Santa Ana, Calif. Firstsource will assume responsibility for selling Onvia's computer hardware, software and office products, the companies said.

The move will enable Onvia to concentrate on its online exchange services.

Severance packages and other costs associated with the job cuts will reduce Onvia's earnings by $4 million in the fourth quarter, the company said.

Analysts polled by First Call/Thompson Financial had expected Onvia to post a loss of 30 cents a share for the fourth quarter.

Also Tuesday, Onvia said Chief Financial Officer Mark Calvert will resign at the end of the year. Mike Jacobsen, vice president, finance, was named acting chief financial officer.

Shares of Onvia fell late Tuesday at $1.50, down 15 cents, on the Nasdaq Stock Exchange. Its shares had traded as high as $78 in the past year.