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Siebel to slash Irish jobs
Friday, July 19 2002
by Matthew Clark


Siebel Systems is likely to cut jobs in Galway following a global restructuring
announcement that the company made as part of its most recent results.  

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.