Commerce One Skids After Slashing Jobs

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Commerce One (CMRC) was down 2.3% in preopen Island trading, a day after it said it will cut its remaining staff by nearly half.

The business-to-business software company, which had 2,800 employees on Sept. 30, said it will eliminate 1,300 people from its payroll, or 46% of its workforce. Only 700 of those cuts will result directly from lost jobs; the remaining 600 positions could be absorbed by the "planned spinoff of a number of services operations that are not directly related to Commerce One products," the company said in a statement.

Over the weekend, a German magazine reported that Commerce One would cut up to 40% of its staff so that its partner, German software giant

SAP

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, which holds a 20% stake in the company, could purchase the rest of the company. Both Commerce One and SAP declined to comment on the report, saying that it was based on rumors.