DESCARTES TO CUT WORK FORCE BY 10 PERCENT
The Descartes Systems Group said Thursday it will reduce its work force by 10 percent in anticipation of an operating loss of 11 to 12 cents a share for the second quarter of 2001.
“We regret that despite our best efforts, the deterioration of global market conditions during this quarter affected the sales of licenses and, consequently our financial performance, more than we had anticipated,” said Peter Schwartz, chairman and chief executive officer of Descartes.
As part of a plan to lower costs, Descartes will cut 70 jobs, resulting “in a charge of approximately $3 million in the third quarter,” said Colley Clarke, the group’s executive vice president for finance and chief financial officer.
Descartes expects to report total revenues of about $20 million for the second quarter. Final results for the quarter will be released on Aug. 21.