News & Observer | newsobserver.com | Entrepreneur incubator cuts staff by 30 percent

Published: Jul 04, 2008 12:30 AM
Modified: Jul 04, 2008 02:43 AM

Entrepreneur incubator cuts staff by 30 percent

 

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The Council for Entrepreneurial Development this week cut 30 percent of its staff as the Durham nonprofit revamps amid a slowing economy and a leadership change.

The organization Wednesday eliminated five positions, said Stephen Wiehe, incoming board chairman, who notified the staff. This leaves CED with 11 employees, down from about 18 a year ago.

"The reason for the downsizing was to balance revenue and expenses," said Wiehe, chief executive of SciQuest, a Cary software company. "As we've seen the economy slow, it became obvious that it was time for us to reset CED."

It was the first phase of a three-part evolution that likely will unfold during the next nine months.

CED is in transition after its long-time leader, Monica Doss, retired in May. During her 22-year tenure, she oversaw CED's growth into the nation's largest support group for entrepreneurs.

The nonprofit added staff, conferences and other services as the technology and biotechnology sectors expanded in the Triangle, and CED sought to broaden its appeal.

Amid the expansion, some in the entrepreneurial community worried that the range of programs diluted CED's mission. Some donors have questioned whether their money is being used in the most effective ways.

Wiehe stressed that CED is not in trouble and changes are not a reflection on Doss' leadership.

"CED means a lot of things to a lot of people," he said. "Organizations, as they've been around for a while, sometimes you need to take a fresh look at what's being done."

The job cuts, in addition to lowering expenses, should help bring a bit more transparency to CED's operations, Wiehe said. Once the organization is refocused, CED should grow again, Wiehe said.

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