Platinum Technology Inc. disclosed plans late yesterday to increase its profits by reducing operating margins and consolidating its existing five business units into two divisions. As part of its cost-cutting measures, Platinum says, it will shrink its workforce by approximately 15%, or 1,000 employees.
Platinum will now have two major business groups: Enterprise Management and Application Life Cycle, and Knowledge Management. The system-management software and services company will reconfigure its sales and consulting forces so that each customer has a single point of contact. Platinum is also closing some offices and relocating the staffs from them to other offices in close proximity.
Platinum says it will be subjected to a one-time charge of between $90 million and $110 million this quarter because of its planned actions.