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Interact cuts staff after Sage acquisition

Interact cuts staff after Sage acquisition

Interact Commerce Corporation slashed its workforce this week in Australia after its acquisition by UK software conglomerate the Sage Group in March of this year.

The bad news for staff comes after the contact management and customer relationship (CRM) vendor denied suggestions that it would lose staff as a result of the Sage buyout.

While Paul Young, managing director of Interact Asia Pacific, claims the decision had more to do with a general softening of the economy, he did concede the move stemmed from having to align budgeting periods with its acquirer. Sage's fiscal year follows the calendar year, whereas Interact's financial year ends September 30.

"We had budgeted to September and with the acquisition, in the end we had to rebudget up to the end of December," Young told ARN.

Young also claims the retrenchments were made in consideration of supporting the channel.

Interact co-founder Mike Muhney, general manager of international operations, flew down from the US last week to deliver the cuts. It is not known how many of Interact's 50 or so Asia Pacific staff were let go, however Young confirmed it was "quite a few". Sources suggest as much as 25 per cent of the staff have been shaved.

Nick Gaynor, regional director Asia Pacific for Interact's ACT! product line said the company had traditionally been driving revenue growth, but now had a responsibility to drive profitability. This resulted in the retrenchments which are designed to lower overheads while maintaining the sales growth.


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