Art Technology Group
, the e-business software company that warned of dismal first-quarter numbers last week, said today it will slash 12% of its workforce, or 150 people, cut the pay of remaining employees and consolidate its real estate holdings.
Besides that, though, everything's fine.
In a statement about the cutbacks, Art Technology CEO Jeet Singh was quick to reassure Wall Street that things haven't reached panic mode at the company.
"While we are taking aggressive measures to control expenses in this economic climate, it is essential to note that the company remains on very solid footing from a technological, operational and financial perspective," Singh said. "We have been careful in our selection of expense reductions to maintain these strengths and continue to invest in ATG's future growth to maintain and improve our market position. In this regard, we anticipate further strategic hires in sales and marketing, as well as research and development to capitalize on ATG's current and long-term market opportunities."
Last week, the company said first-quarter revenue would be $40 million to $42 million, missing analysts' expectations of $69 million by a country mile. The company also said it expects a loss of 19 cents to 22 cents a share, instead of the 9 cent profit Wall Street projected.
Art Technology's shares have lost more than 55% of their value since that warning. Thursday, the stock was up 50 cents, or 9.6%, to $5.70 on the cost-cutting news. The company will report official financial results on April 26.