Peregrine Systems this week announced it would be cutting 1,400 jobs, or 48 per cent of its workforce, in the next few weeks in an effort to streamline its business.
The asset and desktop management software maker says the reduction of its staff from 2,900 to 1,500 will result in the consolidation of its numerous business locations. Offices outside North America may also be affected, according to a statement from the company. Peregrine did say the cuts will not affect the Remedy business, which Peregrine acquired about this time last year.
Peregrine earlier this month had announced that the Remedy business would operate as an independent unit at the same time the company named its new CEO, Gary Greenfield, formerly with Merant, an e-business development solutions company.
"We've had to take difficult but necessary steps to reposition our company in line with current market conditions, and this workforce reduction will help Peregrine sustain long-term viability," Greenfield said in a statement this week. He went on to say the changes would have "minimal impact" on Peregrine customers.
The news of the job cuts may have seemed imminent to some with Peregrine earlier this month announcing it took a $US50 million loan and security agreement from Foothill Capital. This follows the company's loss of two executives in May when accounting issues related to about $US100 million in revenue surfaced. More issues arose when Peregrine had to restate its financials and then fired its auditor dealing with the US Securities and Exchange Commission's investigation.
Ironically, with all the recent news, Peregrine won recognition from Network World as one the fastest growing companies in 2001. Greenfield said that, despite the hard times, "the Peregrine business will be a lean, efficient and productive organisation".