FC: Zero Knowledge lays off 1/4 employees, gets $22 million

[Declan McCullagh <declan () well com>]

[This is harsh for the folks who will be laid off, but probably good news 
for Zero Knowledge. Based on what a savvy observer could estimate to be its 
current burn rate, and based on the amount of VC cash it raised so far, its 
near-term prospects looked anything but great. (Which would have been a 
shame, since the company's technology is so promising.) I suspect this 
means that ZKS will turn more toward consulting and patent licensing and 
rely less on sales of Freedom. Unfortunately ZKS has not posted details on 
it site. Below is a wire report. --Declan]


http://www.wired.com/news/business/0,1367,42448,00.html

   Zero-Knowledge Gets Cash
   Wired News Report
   8:45 a.m. Mar. 15, 2001 PST

   Zero-Knowledge Systems said it raised $22 million from a group led by
   a unit of Reuters, but is also reducing its staff by about one-fourth
   as part of a reorganization.

   The closely held company is one of the best-known suppliers of
   software to protect computer users' privacy on the Web.

   Tamas Hevizi, who last month became president and chief executive
   officer, said Zero-Knowledge's reorganization, which will cut its
   workforce from about 250 to 180, reflects a shift in focus from
   technology development to sales and marketing. The company is looking
   to hire new employees in those two areas, he added.




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