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NowDocs Reduces Staff, Still Focused On Original Plan

Press release from the issuing company

5/31/01 (WhatTheyThink.com)- According to sources within NowDocs and those familiar with the company's decision, NowDocs has laid off about 30 employees. Sources said the company continues to expand yet is pressured to reduce expenses in every possible way. Bennett Hirsch, Senior Vice President of Sales and Marketing at NowDocs would not discuss specifics around the decision. "We continue to increase revenue and focus on expanding our customer base. Decisions around employment numbers will not have any impact on the service we provide." Hirsch said the company has implemented technology and procedures that allow them to automate activities although he did not say that was the reason for the staff reduction. Last week, NowDocs said they continue to grow at a record pace. Print volume has increased 50 percent in Q1 2001 over the prior quarter. Sources said NowDocs still has about 100 employees however, company officials would not confirm their exact employee count. Hirsch said they have a close relationship with their investors. Hirsch would not disclose the company's financial situation but said NowDocs has not raised any new money this year. "Our investors have 'real time' knowledge of our situation and they are very supportive of NowDocs." Earlier this year, the company reduced it's staff by 35. After the reduction, the company had about 150 employees and 10 offices scattered across North America. In March, the company launched IntraPrise 2.0. The service targets Global 2000 accounts with multiple print centers and facilities management companies. Companies are using IntraPrise to improve workflow and prevent the high cost of "leakage." Leakage is a term NowDocs uses to describe high prices companies receive when they go to a retail copy center. NowDocs announced an expanded same-day, on-demand print and delivery service last week. The service reaches more than 75 percent of the U.S. population and pricing begins at under $20. Hirsch said the company will make several significant announcements in the coming weeks that will further validate their model.