Feeds

Siebel de-installs 490 staff

'We have bit the bullet'

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Siebel Systems is culling 490 staff -nine per cent of the pay-roll in an effort to hold profit margins steady at 15 per cent as sales fall.

Apparently 350 staff have already gone in this round, with the rest expected to be out the door in the next few weeks. By the end of October the CRM vendor will have 5,000 employees on its books. Last year, Siebel reduced its staff by 1,000.

Siebel is also to merge some product lines and reshuffle some business operations offshore in its drive to strip out $30m costs per quarter this year. By next summer, Siebel wants to reduce costs by an extra $10m a quarter.

In a conference call to discuss the the firm's Q2, Tom Siebel said "we have bit the bullet" over costs. Which is all very well, Tom, but it's the 490 pink slippers who are doing the biting, surely?

Siebel blames the cost cutting and a poor set of results on "a long, dry spell in the business applications market". This won't last for ever, he said. But when will it pick up? Uncertainty created by Oracle's takeover attempt of Peoplesoft had also had a negative impact, with some customers deferring buying decisions, he says.

For the three months to June 30, Siebel produced net income of &9.8m, down 67 per cent on last year. Revenues were $333.3m, down 17.8 per cent on last year. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ellison: Sparc M7 is Oracle's most important silicon EVER
'Acceleration engines' key to performance, security, Larry says
Linux? Bah! Red Hat has its eye on the CLOUD – and it wants to own it
CEO says it will be 'undisputed leader' in enterprise cloud tech
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
Ello? ello? ello?: Facebook challenger in DDoS KNOCKOUT
Gets back up again after half an hour though
Hey, what's a STORAGE company doing working on Internet-of-Cars?
Boo - it's not a terabyte car, it's just predictive maintenance and that
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.