Business applications vendor J.D. Edwards & Co has disclosed that 8 per cent of its employees have been laid off as part of a self-styled "revitalisation" effort following several quarters of losses and declining sales.
But the software developer also said earnings in its fiscal second quarter, ended April 30, should be higher than expected, despite a continued drop-off in revenue. Results from "normalised operations" are likely to be "significantly better" than the $US1.7 million operating profit reported for last year's second quarter, J.D. Edwards said.
The company added that it expects up to $215 million in second-quarter revenue, with software license fees amounting to about $63 million. Both those figures would be off from the respective year-earlier totals of $231 million and $81.7 million, but CEO Ed McVaney said in a statement that J.D. Edwards has made "considerable progress" in its recovery plan.
The maker of enterprise resource planning and supply chain management software pared its employee roster by 400 workers as part of a planned $75 million cost-cutting program. Other steps in the works include a restructuring of the company's sales and service operations, a management cutback and a rebuilding of its marketing department.
The changes follow a February management shake up in which J.D. Edwards named a new chief operating officer and a new head of marketing. The layoffs are the second round of workforce cuts in the past 12 months at the company, which let 800 people go last May.