Supply-chain software maker

i2Technologies

(ITWO)

announced Thursday itwill cut its workforce by 15% in order to break evenby the first half of 2003.

Dallas-based i2 plans to disclose Thursday in its10Q filing that it will cut about 500 employees fromits staff of 3,355, said Melanie Ofenloch, thecompany's vice president of corporate relations. Likeother supply-chain management software makers, i2 hasbeen struggling with a drop in large deal sizes ascompanies have cut back their IT spending.

The layoffs are meant to bring i2's expenses toless than $100 million by the first quarter of 2003,compared to about $120 million to $125 million incosts expected in the fourth quarter, Ofenloch said.The company plans to take a restructuring charge inthe fourth quarter, but does not yet know the amount ofthat charge.

i2 has said in the past that its goal is to breakeven by the first or second quarter of 2003. Thecompany, which underwent another restructuring in2001, already has laid off nearly 1,400 employeessince July.

Shares of i2 declined 2 cents, or 2.1%, to $1.04in recent trading Thursday.