Vignette cuts costs by slashing 450 jobs

Vignette cuts costs by slashing 450 jobs

Vignette, a supplier of electronic-business applications, has cut about 450 jobs, or 15 per cent of its work force, to reduce operation costs.

Kate MacIntosh, marketing and communications manager at Vignette Australia, said cuts were made across the board at a global level, with no specific department being singled out. The company expects the reorganisation to result in about $US100 million in savings over the next year.

According to MacIntosh, 11 per cent of Vignette's 170-odd staff in the Asia-Pacific region were shown the door. "Despite the retrenchments, we remain excited about opportunities in the next quarter," she said.

Vignette said in its earnings statement released last Thursday that its long-term outlook and market position is strong. However, the company cited "recent uncertainty surrounding the overall IT spending environment and customer hesitancy to make large capital expenditures", as a reason to restate its financial outlook for fiscal year 2001 and for the reorganisation.

Vignette reported a $US6.3 million core operating loss for its fourth quarter ending December 31. For the year, the loss was $US24.3 million. Revenue was $123.9 million for the quarter, representing a 203 per cent increase over the same period a year ago. Revenue for the full year was $366.7 million, a 311 per cent increase over 1999.

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