PeopleSoft is to cut 200 jobs worldwide and close its Santa Clara office in response to bad economic times.
Only internal administrative and support functions are anticipated to be cut, sparing customers from any negative effects of the "cost measures", said Steve Swasey, a PeopleSoft spokesman.
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"We are not anticipating research and development, consulting or sales headcount reductions," he said. "The focus will be as it always is, on customer satisfaction and customer growth."
The 100 employees in the Santa Clara office will move to PeopleSoft's Pleasanton, California, headquarters.
PeopleSoft expects to take a $12m charge in the second quarter for this restructuring, one of the first large cost-cutting actions by the software maker in a time in which many suppliers are tightening their belts amid lower corporate spending on IT.
PeopleSoft employed 8,180 people worldwide as of 31 March, compared with 8,293 at the end of 2002.
The company yesterday reported net income for the first quarter of 2003 of $38.5m, down from $44.5m in the same period last year. Revenue dropped to $460.3m from $483.3m.
Licence fees took a big hit, tumbling to $80.8m in the first three months of 2003 from $133.3m in the first quarter of last year. Maintenance and professional services revenue was up, evening out the overall revenue picture.