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Compuware starts global restructuring

Business software and professional services vendor Compuware is restructuring its business, closing some offices and laying off...

Business software and professional services vendor Compuware is restructuring its business, closing some offices and laying off an undisclosed number of workers as part of a plan to shed unprofitable operations worldwide.

The company announced an immediate reorganisation of its North American and European professional services operations to cut costs in a quest to become profitable.

"As part of our review of Compuware's financial performance, we identified a number of professional services locations where we have not been able to build critical mass or achieve a level of profitability," Compuware chairman and chief executive officer Peter Karmanos said in a statement.

"We do not expect these circumstances to change in the foreseeable future."

Compuware has 12,000 IT workers and about 110 offices worldwide. The company will not announce layoffs or office closings until all employees that may be affected affected have been notified, said spokeswoman Lisa Elkin.

She added that the cuts are likely to be completed within about two weeks in North America. In Europe, layoffs and closings will conform to the laws of each country.

This is the first time since the company began in 1973 that it has restructured or laid off workers, Elkin said.

The layoffs will affect professional services employees as well as support staff and salespeople working with them, according to the company. Severance packages will be offered, including job search assistance.

"While these decisions have been difficult, Compuware is obliged to take action that helps ensure the future growth and profitability of the organisation, for the sake of employees as well as shareholders," Karmanos said.

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