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Prolong to Cut Staff 30% to Boost Profits

September 19, 2000|Dow Jones

Prolong International Corp. said Monday that it will reduce its work force by about 30% in an effort to return to profitability next year.

The Irvine maker of lubricant and automotive products said in a press release that other savings were realized through the renegotiation of long-term contracts and the elimination of expendable services.

Company officials were unavailable for comment. The press release did not say how many employees have departed.

Prolong said sales and marketing costs, as well as general and administrative costs, will reflect a reduction of 50%, or $17 million, from last year's levels as a result of its cost-reduction plan.

Last year, Prolong reported a loss of $6.6 million, or 23 cents a share, on sales of $34.5 million.

Prolong said it plans to unveil and implement aggressive marketing plans, including certain unique programs for its products.

The company's stock lost 3 cents a share to close at 22 cents in American Stock Exchange trading.

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