Manugistics To Shrink Workforce After Losses Grow - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Manugistics To Shrink Workforce After Losses Grow

Supply-chain software vendor will cut staff by as much as 12% to try to return to profitability.

Losses at Manugistics Group Inc. widened during its second quarter, and the supply-chain software and services vendor says it will cut its workforce 10% to 12% as it tries to return to profitability. For the quarter ended Aug. 30, Manugistics reported a net loss of $47.7 million, or 68 cents per share, on sales of $69.9 million, compared with a net loss of $21.7 million, or 32 cents per share, on sales of $73.8 million in the same period a year ago.

"Our No. 1 goal now is accelerating our return to profitability," CEO Greg Owens says. The company, which bills itself as an "enterprise profit optimization" application vendor, will reduce its head count to between 1,225 and 1,250 by the end of the current quarter. The job cuts, combined with other expense reductions, will save the company $5 million to $7 million per quarter.

The cuts are in addition to a 12% workforce reduction Manugistics revealed in June. The company also says president Richard Bergmann, who took a leave of absence in late June, will leave to "pursue other business opportunities." No replacement was announced.

There are signs that business is beginning to pick up, Owens says, citing more requests for proposals from prospective customers and an increase in the sales pipeline. But those aren't enough to quickly return Manugistics to profitability. "In this environment," he says, "we must manage expenses as tightly as we manage revenue generation."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Slideshows
10 Top Cloud Computing Startups
Cynthia Harvey, Freelance Journalist, InformationWeek,  8/3/2020
Commentary
How Enterprises Can Adopt Video Game Cloud Strategy
Joao-Pierre S. Ruth, Senior Writer,  7/28/2020
Commentary
Conversational AI Comes of Age
Guest Commentary, Guest Commentary,  8/7/2020
Register for InformationWeek Newsletters
Video
Current Issue
Special Report: Why Performance Testing is Crucial Today
This special report will help enterprises determine what they should expect from performance testing solutions and how to put them to work most efficiently. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll