Customer relationship management software supplier
Siebel Systems is to cut a layer of its operating hierarchy and
reduce staff as it faces continued flat revenues.
Reporting its preliminary earnings for its second quarter, which
ended 30 June, the company estimated its overall revenue at the
high end would be around $334m (£201m). It estimated revenue from
new licence fees would be $110m (£67m).
Siebel blamed "unexpected delays in purchasing decisions" by
customers and uncertain prospects.
Chief financial officer Kenneth Goldman said Siebel would cut
263 jobs, reducing the workforce to 5,589.
Chief executive officer Tom Siebel said that because the economy
is not picking up, the company will be restructuring over the next
two months, which would include removing some management roles
and some unprofitable business operations.
The company will be left with a "structure that we think will
allow faster decisions, faster feedback from the market, and
simpler interaction for the customer".
Siebel said the changes would not disrupt service to
clients.
Customers will just have a primary contact that will tend to
manage all those various activities for the customer, so they do
not have to manage it themselves across say education, professional
services, sales, customer support, all of the expert services,
multi channel services.
The company will report its final results for the second quarter
on 22 July.
Marc L Songini writes for Computerworld
