Xata Lays Off 29 as It Moves to Mobile Devices

The job cuts come at a time when Xata—which provides fleet-management software for trucking companies—is moving away from onboard systems and toward the use of mobile devices.

Xata Corporation has laid off 29 employees as part of a shift in its business model.

The Eden Prairie-based software company helps trucking companies keep track of their fleets—and it is in the process of moving away from onboard fleet-management systems and toward the use of mobile devices.

It announced the job cuts in a Tuesday filing with the U.S. Securities and Exchange Commission. As of September 30, Xata employed 210—so the cuts affected almost 14 percent of the company’s workers.

Xata said that it expects to take an $800,000 restructuring charge for the quarter that ended June 30 in order “to better align our work force with our mobile-based strategy.” However, going forward, it predicts annual costs savings of $2.8 million.

The company will also record charges of between $1.3 million and $1.6 million in order to write off obsolete inventory. Additionally, management concluded that a $3.4 million impairment charge was necessary, Xata said.

Xata made headlines recently when Chief Financial Officer Scott Christian abruptly resigned, effective June 22, after about a year on the job.

For the fiscal year that ended in September, publicly traded Xata reported a net loss of $2.8 million on $63 million in revenue. For the second quarter that ended in March, the company reported a $2.1 million net loss on revenue totaling $15.9 million.