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Avatech Solutions lays off 41

By Scott Dance
 –  Staff

Updated

Avatech Solutions Inc. cut another 41 people from its work force Friday.

The layoffs follow a 10 percent reduction in employees in April, when Avatech had about 200 workers. Now it has 146, the company said in a Securities and Exchange Commission filing.

The company is reacting to drops in revenue as demand falls for its software, which is used by design, engineering and facilities management firms. Avatech (OTCBB: AVSO) lost $146,000 in the first quarter of 2009 after revenue fell 37 percent to $8 million.

The job cuts are expected to save $2.6 million over the year.

The company had also instituted a 10 percent pay cut for all employees when it made the April layoffs. Those moves were expected to save $2 million.