Staff cuts for the local operation of Geac will most likely amount to two out of 140 jobs according to Graeme Riley, managing director Geac Asia Pacific.
Earlier this week the Toronto-based ERP vendor announced plans to reduce its workforce by about 12% in a cost cutting effort after posting a $US44.3 million loss in its first fiscal quarter ended July 31.
Geac has 140 staff in New Zealand in Auckland, Wellington and Christchurch and around 250 local customers.
Riley who arrived back in New Zealand from Toronto on Wednesday, says the job cuts will be announced by the end of next week. He says the 12% figure is not universal and reduction of staff numbers is in proportion to performance.
“New Zealand has performed well and is probably the best performing operation in Asia Pacific,” he says.
“This cost reduction programme is a message that we’re going back to our tried and true way. We only missed one quarter but that was enough. Our strategic direction is now to focus more specifically on ERP business.”
He adds that Geac is still aggressively looking at acquisitions in the e-commerce area.
Geac owns the former Dun & Bradstreet Software company, one of the big second-tier vendors of ERP applications. It has also acquired specialised ERP vendor JBA Holdings, Clarus's financial and human-resources software business and Sydney-based TouchPoint Information Solutions.
Geac’s poor financial results and subsequent drop in share price, has left the company vulnerable to a take-over. Riley says whether an acquisition will take place remains to be seen.