Entrust Inc. on Monday announced it is laying off 30 percent of its work force and taking a $400 million restructuring charge as it tries to streamline its operations.
The Plano, Texas, provider of public-key infrastructure security products also changed its name from Entrust Technologies Inc.
The loss of 400 jobs and the restructuring of the company along vertical-market lines are both part of CEO William Conner's plan to return the company to profitability, a goal that he has made one of his top priorities since taking over as CEO earlier this year.
Conner said Monday that the job cuts were a necessary part of his plan for the company to break even by the end of this year.
"The results of these actions are tough, but our company is more agile and competitive as a result," Conner said.
As part of its restructuring, Entrust's business will be focused on three main vertical markets: government, financial and large enterprises. The company will also be closing some of its satellite offices.
Entrust and other PKI vendors, such as Baltimore Technologies Inc., have been on the ropes of late, as the slowing U.S. economy has taken a bite out of IT budgets, particularly in regards to lengthy, expensive projects such as PKI deployments.
The company also announced that Alberto Yepez, president of Entrust New Ventures Group, is leaving the company but will retain his seat on the board.