In an effort to return to profitability by late 2003, N2H2 Inc., a major seller of internet filtering technologies to schools, announced on Sept. 9 that it would undergo a restructuring, including the termination of 18 employees across the company.

The layoffs, which included the company’s chief operating officer and vice president of marketing, constituted nearly one-fifth of N2H2’s work force, according to company spokesman David Burt.

Despite the cuts, Burt said the company has made no plans to alter any of the services it offers to schools.”No one from any of our education divisions was lost” said Burt, who added that the company will continue to build on its presence in the education market by attending trade shows and promoting products like its Bess filtering software for schools.

Last year, the company reportedly lost upwards of $6.4 million. In restructuring its work force, N2H2 said it expects to reduce annual operating expenses by 11 percent, or $1.5 million, and return to profitability late in 2003. The company’s products include filtering software for Cisco, CheckPoint, Microsoft, and Novell firewall platforms.

“We made a promise to our customers and our shareholders that we would reach profitability in the near term,” said President and Chief Executive Officer Phil Welt in a statement. “Our company restructuring plan will help us accomplish this goal and at the same time allow us to continue delivering the quality filtering solutions that our enterprise and education customers have grown to expect.”