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Jobs will be lost across various departments in the company including sales and marketing, general services and technology.
"We are restructuring our business to get our costs in line to cope with the current changes in the market," said Kelly Murphy, managing director of Marrakech. "The interesting thing is that we are helping companies cut costs during this downturn but we have to put ourselves in a position to weather the storm."
The company was unable to reveal the actual number of job losses but said it would make an announcement early next week. Sources have indicated that around 40 jobs will be lost. Additionally, Murphy said the job losses have created the "potential" for a change in management.
Marrakech's primary line of business is a network-based solution called the Marrakech Global Commerce Network. The e-procurement offering is an Internet-based trading platform that allows companies to interact and trade regardless of size or location.
Severance packages that will fulfil the company's contractual obligations to employees are to be offered to those who will be affected by Friday's cuts, according to Marrakech. Furthermore, Murphy said employees will be offered out-placement services to assist them in procuring employment elsewhere.
Murphy emphasised that support from investors, which include RSA Security, Island Capital and Doughty Hanson & Co., is as strong as ever.
In June 2001, Marrakech revealed that it was seeking an investment of USD25 million in a third round of funding. This has not yet been secured but the company claims that a deal is in the final stages of negotiation and an announcement will be made in the near future.
In July 1999, Marrakech secured USD6 million in its first round of funding. In 2000, it secured another USD24 million in a second round of financing.
In May 2001, Marrakech was chosen by the Jefferson Smurfit Group as Smurfit's global e-procurement solution for indirect expenditure.
The outlook for the future is very good for Marrakech, according to Murphy, who points to such clients as Tesco and British Sugar as indicators of its growing success.
Marrakech is at http://www.marrakech.ie.
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