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Earlier this month, Blackwater changed its name to "Xe" in an apparent effort to escape the bad publicity associated with the Blackwater brand. Now, whatever the merits or problems of the company, I've always thought that Blackwater was kind of a cool name. It combines a Doobie Brothers sensibility with a vague aura of menace, which is just about all you can ask for in a private security company's name. In fairness, Executive Outcomes was also a pretty awesome name for a mercenary company. Anyway, the firm's abandoning of the Doobie Brothers for a vaguely Chinese sounding moniker hasn't yet turned things around:Blackwater Xe may have erred by developing too public a profile. One component of success, I'm guessing, is the ability to fly just below the radar, such that the relevant customers know of your existence but the media and public really don't. In any case, I could see the argument that private security contracting is essentially counter-cyclical -- the political disorder that follows a global recession would be good for business. On the other hand, private security companies may really be luxury items, only affordable in times of plenty, regardless of the existence of international disorder. Time may tell. --Robert Farley
Xe spokeswoman Anne Tyrrell said: "The company's ongoing reorganization has unfortunately required some staff reductions. These actions, while difficult, are part of a continuing effort to ensure the best value to our customers, and improve the company's efficiency."While Tyrrell did not provide specific numbers, this is not the first time the company has been forced to downsize. Last year, the company laid off an undisclosed number of workers after the company failed to make the cut in the Pentagon's Joint Light Tactical Vehicle contest. The former Blackwater had plans to break into the manufacturing business as part of a strategy to diversify its business and reduce its dependence on controversial, high-end close protection contracts. The company recently announced plans to train pro athletes in self defense; it also continues to do less-known work, like low-cost, low altitude airdrops to supply U.S. troops on the ground in Afghanistan.It's unclear to me how the economic downturn affects the prospects for private security firms.
