Nerac Restructuring Will Cost Jobs | Revised business model eliminates some positions, adds others
Tolland-based Nerac has laid off 34 employees, the first such major job cut in recent memory, according to President and Chief Executive Officer Kevin Bouley, who said the move was linked to a change in the company’s business model.
With a shift in emphasis from business search functions to a more analytical function, Nerac shifted workers as well, Bouley said. About 67 employees were able to transition to jobs in the new business model, he said, while the 34 laid off could not.
The transition of Nerac’s business model has been underway for some time, Bouley said, and is now in its third phase.
About half of those employees laid off were in Connecticut with the remainder at offices around the world, he said.
And Nerac actually is hiring additional employees as part of its restructuring, Bouley said, placing the total number of employees on the payroll at around 230.
The company is consistently one of Tolland’s biggest taxpayers and was No. 4 on the town’s October 2006 Grand List, with a taxable property value of $4,861,893.
Nerac also has been named by Deloitte & Touche as one of the state’s fastest growing technology companies with annual operating revenues of at least $1 million.
Nerac is a private company that searches the Internet and engineering, scientific, patent, and business databases to gather information for more than 5,000 business clients in 34 countries. The company began operating in 1966 as the New England Research Application Center, an experimental collaboration between the University of Connecticut and the National Aeronautics and Space Administration.
In 1985, Nerac separated from UConn, and in 1991 severed ties with NASA.
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