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August 26, 2009
Neustar Inc. is increasing the number of layoffs related to the reorganization of its instant messaging division.
The Sterling-based communications services company said it would cut up to 120 more employees from its Next Generation Messaging business segment in addition to 51 cuts made in the fourth quarter of 2008. Neustar will also close a facility in Haifa, Israel as part of the reorganization.
Many of the positions to be eliminated are based at the Haifa facility. However, some of those job functions may be transferred to North American facilities by the end of March 2010. A Neustar spokesman said other Next Generation Messaging positions worldwide may also be eliminated or relocated, and the total number of employee positions that may be affected could reach 120.
Neustar described the closure and jobs cuts as the final step in making the mobile messaging unit more efficient and effective. Neustar (NYSE: NSR) created Next Generation Messaging when it acquired Followap, Inc. in 2006. It currently serves more than 410 million mobile messaging customers worldwide.
If no jobs are eventually transferred, the newly announced cuts would be a reduction of more than 12 percent of Neustar’s payroll, as of Dec. 31, 2008 when it employed 966.
Neustar said additional charges for severance and facility closing will increase the costs of the unit’s restructuring by $5.5 million to $6 million. That will be in addition to $1.7 million in charges already recorded in the fourth quarter. The company expects to start booking the new charges in the third quarter of 2009 and to complete the reorganization by the second quarter of next year.
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