Pilot Network Services, beleaguered provider of security
outsourcing services with a roster of major corporate clients, last
week said it had suspended business operations and laid off all of
its workers.
In a brief statement Pilot said the shutdown took place at the end
of the business day on 25 April. It said a small number of key
employees will temporarily stay on to assist in "client transition
activities," but it added that the management team doesn't expect
the company to resume operations "in its current condition."
Pilot had been monitoring and providing security services on 70,000
corporate networks, with clients including Sovereign Bancorp,
Providian Financial and The Washington Post. It offered services
such as secure network hosting, Internet access management, virtual
private networking, encryption, authentication and virus
scanning.
The decision to shut down appeared to leave companies scrambling
for alternatives, although some said they had been told that
Pilot's service would continue until 30 April.
Pilot had been struggling financially, and earlier this month, it
laid off 23% of its workers in a bid to cut costs