BMC reduces workforce by 7 per cent

BMC reduces workforce by 7 per cent

Cutting costs amid tougher business conditions, BMC Software will lay off 7 per cent of its workforce, or around 476 employees, the company said.

BMC did not disclose which business units would be affected by the layoffs. The company said it would take a charge of between $US14 million and $18 million during the third quarter as a result of the layoffs.

However, the effects in Australia are expected to be minimal, according to one former senior ranking BMC executive, who was laid off in July. He said the company has trimmed around 60 of its 480 Asia-Pacific staff since July, including country manager Charles Rance.

BMC makes software to manage server infrastructure for applications, and competes with IBM subsidiary Tivoli Systems, Computer Associates Unicenter products and Hewlett-Packard's OpenView offering, said Tim Grieser, an analyst at International Data Corp in Boston.

It's been a tough year all around for software makers, Grieser said. BMC's "severe" focus on cost containment "is consistent with other things going on in the industry", he said. CA cut 900 positions from its global staff in October, and Tivoli laid off 250 of its 4250 employees in July. HP has made job cuts in the thousands this year, although it isn't clear how many, if any, have come from its OpenView division.

BMC took a net loss of $US53.3 million, or $0.22 a share, for its second fiscal quarter ending September 30, compared to a loss of $12.5 million, or $0.05 per share, in the same quarter a year earlier. Revenues declined about 9 per cent, to $293.8 million compared to $323 million in the same quarter last year.

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