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Software maker Siebel, which has a Services Centre in Galway, located in the IDA's Dangan Business Park, is expected to cut between 30 and 40 jobs in Ireland, or around 25 percent of its workforce, ElectricNews.Net has learned. The firm's Irish facility currently employs around 140.
Siebel spokespeople could not be reached to comment on the cuts, but sources told ElectricNews.Net that the company has informed workers in Galway of its intention to make cuts. IDA spokespeople corroborated this claim, saying that the company had informed the government body of its plans to cut staff in Galway.
The company's Galway centre is part of the Siebel technical services group, which includes software engineering, localisation and development services. It also provides technical support services for Siebel's European customer base, as well as some financial management and administrative functions for Siebel's European business.
The cuts, which are part of 1,200 global job losses from its 6,000 strong workforce, come two days after Siebel released poor second quarter results. These sent Siebel's shares tumbling in New York, closing on Thursday at USD11.74, down over 18 percent. Siebel shares sank a further 1.5 percent on Friday by midday.
On Wednesday the company said Q2 earnings would come in at USD0.06 per share or USD29.8 million, missing Wall Street analysts' estimates of USD0.09 a share. Last year, Siebel earned USD0.17 a share, or USD76.6 million. Revenue for the software company came in at USD405.6 million in Q2 2002 compared to USD560 million in the second quarter last year. Crucially, the firm said that software license revenue fell 40 percent, to USD170 million.
The company's global job cuts will force it to take a third quarter charge of between USD200 million and USD250 million.
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