Innuity Inc., a Minnetonka-based firm that builds Web sites for small businesses, said it fired 120 people from its nationwide sales staff in a reorganization.
Only a few of the people affected by the layoffs are in the Twin Cities area, said Susan Misukanis, vice president of marketing for the privately held concern.
Innuity, formerly known as QuikPages, is restructuring its sales effort to emphasize sales through third-party channels and partnerships with companies such as IBM, rather than through its own staff. The company said it will continue to maintain a substantial sales force; most of the 480 employees remaining with the company will be salespeople.
"We're focusing less on feet on the street," Misukanis said.
Innuity uses a variety of sales channels such as call centers and direct marketing to entice small companies - up to 25 employees - to buy a Web site or a Web store. Through its 80-person office in San Clemente, Calif., Innuity also makes Web pages for radio stations.
While the slowing economy has other companies delaying Web development expenses and other Internet initiatives, Misukanis said Innuity is seeing an increase in Web site sales and saw two record sales days recently. The layoffs were intended to help the company reach profitability sooner, she said.
Innuity achieved $25 million in sales last year and expects to double that this year and earn its first profit by early next year.
"With the new partners we're bringing on board, we're ready to rock," she said. Innuity was founded in 1995.
- Sherri Cruz is at scruz@startribune.com.
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