27 February 2002 A fresh round of job cuts yesterday underlined that the technology sector’s difficulties are still far from over.
UK network-management software provider RiverSoft said that it will reduce its workforce to about half its original size by mid-2002, while Sapient, the once high flying US Internet services company has announced the cut of almost a third of its workforce.
RiverSoft, which issued a profits warning in 2001, revealed its intention to make a further 160 cuts as it reported a 49% rise in pre-tax losses to £39.4 million (€64.7m).
Emphasizing its current financial difficulties, it said it had £55.5 million (€91.9m) in cash at the end of 2001. However, it believes that this will be sufficient to fund the company until it breaks even at the end of 2002 or early 2003.
Sapient said that the loss of 545 staff would cut quarterly costs from $80 million (€92.1m) to $60 million (€69.1m). The company will take a restructuring charge of between $50 million (€57.6m) and $55 million (€63.3m) to pay for it.
The job losses will primarily be made in Sapient’s North American operations, although some cuts will be made in its London office. Sapient’s co-CEO, Jerry Greenberg, said: “In this economic environment it is imperative we take these actions to align our costs more closely with the near-term outlook for our industry.”