Following its worldwide announcement of “a substantial reduction” of its workforce, Geac is making 17 staff redundant in New Zealand.
Lay-offs comprise 15 staff from the company’s Streamline Product Group, and an ERP sales person and an ERP pre-sales person.
The Toronto-based business applications vendor announced it would make staff cut-backs in March after the company failed to attract a buyer. Now it is looking to sell of vertical industry units instead.
At the time, Geac president and CEO John Caldwell said the goal of the cutbacks was to make sure all of Geac’s business units are profitable during the next fiscal year.
Geac has around 140 staff in New Zealand in Auckland, Wellington and Christchurch and this is the second round of job cuts - two were laid off last October.
Geac Asia Pacific managing director Graeme Riley told staff last week that it was necessary to reduce costs in order to improve profits. He said this discipline was being applied to all areas of Geac’s business around the world.
In March Geac reported a net loss of $US141.7 million from continuing operations for its fiscal third quarter ended January 31, on revenue of $139.1 million.
Geac New Zealand general manager Nigel Birtwell says that locally the company gained 10 new accounts in the past year, including three for the latest release of SmartStream, one for FlexEcomm and one which is a StreamLine application service provider offering.