i2 Technologies Cutting 15% of Staff
Ronna Abramson
11/14/02 - 02:13 PM EST
Supply-chain software maker
i2
Technologies announced Thursday it
will cut its workforce by 15% in order to break even
by the first half of 2003.
Dallas-based i2 plans to disclose Thursday in its
10Q filing that it will cut about 500 employees from
its staff of 3,355, said Melanie Ofenloch, the
company's vice president of corporate relations. Like
other supply-chain management software makers, i2 has
been struggling with a drop in large deal sizes as
companies have cut back their IT spending.
The layoffs are meant to bring i2's expenses to
less than $100 million by the first quarter of 2003,
compared to about $120 million to $125 million in
costs expected in the fourth quarter, Ofenloch said.
The company plans to take a restructuring charge in
the fourth quarter, but does not yet know the amount of
that charge.
i2 has said in the past that its goal is to break
even by the first or second quarter of 2003. The
company, which underwent another restructuring in
2001, already has laid off nearly 1,400 employees
since July.
Shares of i2 declined 2 cents, or 2.1%, to $1.04
in recent trading Thursday.
