Invensys yesterday became the latest company to join the "tech wreck," saying it will lay off more than 5000 workers. The London-based software, control and power-systems company blamed deteriorating economic conditions in the US for a downturn in sales and profitability.
Invensys bought ailing business applications vendor Baan last August and won users' praise by pledging to beef up Baan's customer relationship management software products.
In a statement, Invensys said, "In software systems, profitability is starting to recover from a difficult first half. Baan is trading profitably, as costs have been reduced and licence revenues have improved." Nevertheless, it noted that the "telecommunications/information technology sector is currently undergoing a slowdown".
Despite the belt-tightening, Invensys said it "will continue to invest in high-growth opportunities, especially those which strengthen our ability to provide customers with systems and service solutions."