Emplanet Exits Recordkeeping Business

November 14, 2002 (PLANSPONSOR.com) - Online 401(k) provider Emplanet has decided to abandon its recordkeeping processing business, so that it can concentrate on being a 401(k) technology provider.

Gary Gould, senior vice president of business development, told PLANSPONSOR.com that the decision to drop the recordkeeping part of its company came Thursday along with an announcement that 44 of its 79-member staff would be laid off as of Friday.

Gould said the company was handling about 400 retirement plans and was working with the affected companies to locate a new recordkeeper.

“We see technology as our core strength,” Gould told PLANSPONSOR.com . “We’re focusing on providing that technology to our partners.”

Gould refused to say whether the company was losing money in its recordkeeping area.

He said Emplanet officials were now talking with a variety of companies about:

  • a potential merger
  • a potential acquisition
  • a funding infusion.

“We are reviewing these options to solidify the future direction of our company,” Gould said.

The company announced November 11 that chief executive officer and co-founder Doug Manchester had left the company and that two other executives had been promoted to fill in the management gaps. (See  Emplanet Hit With Management Shakeup ).