Chicago-based ERP software provider System Software Associates Inc, which warned of restructuring in May (CI No 3,419), has announced that it has cut its 2,000-strong work force by 12%, or 240 people, and reduced its overall office space by about 25%. The company has also written down a portion of capitalized software and all of the actions combined will result in a one- time restructuring charge of $120m in the company’s third fiscal quarter. SSA had previously said it would be cutting expenses by about 15%, a cut that would be driven by people, for the most part. It had also discussed property and software accounting moves. New president and chief executive officer William Stuek, who took over in April after the departure of company founder Roger Covey, said at that time the aggressive was being taken in the hope of returning to profitability in fiscal 1999 after having lost money for eight of the last ten quarters. First Call is expecting a loss of $0.12 per share for the third quarter and a profit of $0.02 for the fourth.
