The layoffs are part of a move to cut costs.
Commerce One has been undergoing a difficult year as the e-business software market remains slow. Revenue for the first six months of the year reached $59.6m (£38.1m), down 78% from the $271.6m recorded in the first half of 2001. Net loss so far this year has totalled $291.7m (£186.4m).
In January, a major licensing agreement with SAP, under which the two companies planned to sell each other's online procurement software, fell through.
Early next year, the company will launch Commerce One version 6.0, its latest suite of supplier relationship management Web services designed to boost enterprise sourcing and procurement applications.
Actional, Baltimore Technologies, Cognos, Contivo, Sonic Software and VeriSign will all make technology contributions to the Web services platform underpinning Commerce One 6.0.