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i2 layoffs yet to wash up on local shores

i2 layoffs yet to wash up on local shores

Global supply chain software vendor i2 is unable to confirm local job cuts following an announcement last week that it will lay off nearly 15 percent of its global workforce.

The resizing involves shedding 15 percent of its 2000-strong workforce including 10 staff based in Australia.

i2 Australia, whose local customers include Woolworths, Sanitarium and Lion Nathan, is run under the arm of i2 Singapore; however, no representatives of the company were able to confirm how many staff in this region face cuts.

The announcement came only one month after Michael McGrath was appointed as the company's new global CEO.

McGrath said the "resizing" is a part of a commitment to regain the respect and confidence of shareholders.

He said he won the CEO role through a cost-cutting mandate.

"It is my goal to make i2 one of the most productive software and solutions companies in the world, and this is the first step," McGrath said.

"Our next step will be to seek significant improvements in some of i2's core business processes to enable greater productivity with a lower cost structure.

"We take our responsibility and commitment to our customers seriously and believe that becoming profitable allows us to better serve our customers in the long term."

McGrath's plan is to cut more than $US15 million from operating costs to reduce expenses to less than $US70 million.

Rival supply chain software provider IBS is monitoring any local fallout.

Both Woolworths and Sanitarium were unavailable for comment.


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