Financially troubled enterprise resource planning company System Software Associates Inc on Monday said it would reduce its workforce by 15% to 20%. Based on an estimated staff of 2,200, that means roughly 330 to 440 jobs will be lost. News of the job cuts came as the Chicago-based company provided a few more details of the ongoing realignment it first announced in March. SSA says it will reorganize field sales, services and support operations, as well as marketing, research and development and general and administrative support.
The moves will result in a restructuring charge to be taken in the third quarter, ending July 31, and the company promises an announcement on June 30 with more information on the charge. SSA reckons the restructuring should accelerate its return to profitability – something analysts aren’t expecting to happen this year, at least, with the First Call consensus calling for losses of $0.13 and $0.07 per share, respectively, for the next two quarters.
Back in March, SSA re-launched itself, changing its business model by focusing more on customer needs and offering software from third-party vendors alongside its own products and services. Before that move, the company had posted five consecutive quarterly losses as revenue continued to erode. In the second quarter, which ended April 30, SSA lost $7.7m, or $0.16 a share, compared with a loss of $9.7m, or $0.20, in the year-ago period.
