News
News
9/26/2002
03:11 PM
50%
50%

Manugistics To Shrink Workforce After Losses Grow

Supply-chain software vendor will cut staff by as much as 12% to try to return to profitability.

Losses at Manugistics Group Inc. widened during its second quarter, and the supply-chain software and services vendor says it will cut its workforce 10% to 12% as it tries to return to profitability. For the quarter ended Aug. 30, Manugistics reported a net loss of $47.7 million, or 68 cents per share, on sales of $69.9 million, compared with a net loss of $21.7 million, or 32 cents per share, on sales of $73.8 million in the same period a year ago.

"Our No. 1 goal now is accelerating our return to profitability," CEO Greg Owens says. The company, which bills itself as an "enterprise profit optimization" application vendor, will reduce its head count to between 1,225 and 1,250 by the end of the current quarter. The job cuts, combined with other expense reductions, will save the company $5 million to $7 million per quarter.

The cuts are in addition to a 12% workforce reduction Manugistics revealed in June. The company also says president Richard Bergmann, who took a leave of absence in late June, will leave to "pursue other business opportunities." No replacement was announced.

There are signs that business is beginning to pick up, Owens says, citing more requests for proposals from prospective customers and an increase in the sales pipeline. But those aren't enough to quickly return Manugistics to profitability. "In this environment," he says, "we must manage expenses as tightly as we manage revenue generation."

Comment  | 
Print  | 
More Insights
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest, Dec. 9, 2014
Apps will make or break the tablet as a work device, but don't shortchange critical factors related to hardware, security, peripherals, and integration.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of December 14, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.