"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."