Internet company to lay off workers

ChannelAdvisor aims to turn profit

Fast-growing technology company ChannelAdvisor is to announce this morning that it has raised $20 million and plans to cut about 70 employees in an effort to accelerate its push to profitability.

About 45 employees will be let go from the company's headquarters in Research Triangle Park, CEO Scot Wingo said. The remaining layoffs will come from the company's six other locations, including Atlanta, New York, the United Kingdom and Seattle.

Wingo said the company is streamlining its business after two major acquisitions in the past year. The company also is positioning itself to better deal with an uncertain economy.

The cuts come as the company experiences significant customer growth, Wingo said. ChannelAdvisor had revenue of about $25 million last year. In the past year, revenue is up about 55 percent, Wingo said.

"The business has been growing well as the company has been focused on its top line. But now it's time to focus on expenses and getting to profitability," he said.

ChannelAdvisor designs software that enables retailers to sell and market goods over the Internet, via search engines, shopping Web sites and online clearinghouses such as eBay, Amazon and Overstock.

Since its founding in 1999, ChannelAdvisor has expanded to 350 employees, including workers gained through acquisitions. After the restructuring it will have about 280 workers.

The company has raised nearly $80 million in venture financing. It used part of that money to acquire four companies. The latest was in July, when it purchased RichFX of New York out of bankruptcy for about $3 million.

ChannelAdvisor is one of dozens of small, rapidly expanding tech companies based in the Triangle that fuel growth by attracting outside investors.

The latest round of funding was led by New Enterprise Associates. Other investors include Advanced Technology Ventures, Kodiak Venture Partners, eBay and Southern Capitol Ventures in RTP.

Wingo said the new funding will be used for general corporate operations, but no new acquisitions are planned. He expects the company to become profitable next year.