GiftCertificates.com will close its Seattle office at the end of the year, consolidating all of its business operations in Omaha, NE. The change affects about 40 employees and is expected to save about $1 million in annual costs.
The company cited the move as part of its “strategic path to profitability,” the high cost of doing business in Seattle, as well as the efficiency of the central location in Omaha. Most of the company’s technology team, operations, outbound sales and account managers are located in Omaha. It expects to increase productivity by 25% to 35% as a result of operating within the same time zone.
Some of the 40 employees based in Seattle will relocate to Omaha. Others will be let go midyear 2006 and will receive severance packages and job training, the company said.
Two people will continue to work remotely from Seattle. Senior sales leadership will remain in Seattle, with oversight of a remote national sales team, the company said. The company employs about 100 people, down from about 140 following layoffs and attrition earlier this year.
The privately held company provides incentive services to corporations and small businesses. It also provides gift certificates and gift cards to hundreds of national merchants. GiftCertificates.com expects no disruptions to customers.
The company reported 2004 revenues of $100.1 million.
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