BostonCoach Unit To Lay Off 13% Of Staff

BOSTON -- Fidelity Investments' Boston Coach unit, hit hard amid the downturn in corporate travel after the Sept. 11 terrorist attacks, said it would lay off 194 people, or 13% of its staff.

The reductions mark the first layoffs in BostonCoach's 16-year history. The Everett, Mass., company provides upscale car service and other ground transportation in 450 cities in the U.S., Canada and Europe. The company said it expected to provide jobs to 17 of the laid-off employees, about half of whom are drivers.

Even before Sept. 11, business had been sluggish for Boston Coach, with $113 million in 2000 revenue. In the days afterward, ride volume plunged 70% because a big chunk of the service entails taking passengers to airports. Since then, a spokeswoman said, the business has recovered somewhat as the company has refocused on taking travelers on longer trips between cities, making up for reduction in flights and desire for air travel. Ride volume is now down about 20%, she said.

Wall Street Journal, October 16, 2001