Informix Software will reduce its worldwide staff of 4,400 by 10%, with nearly 200 of the cuts coming in Europe, a company official has confirmed
Word of the reductions came earlier this week as company CEO Phil White briefed the financial community about how Informix aimed to use its Universal Server object-oriented database to pull the company back to profitability.
"The aim is to get back to the figures we had in the third quarter last year," Informix spokesman Jeff Lettes said.
Most of the proposed 200 European layoffs have already occurred, some of them through voluntary departures, Lettes said. All regions and all areas of the company will be affected, but temporary and contract works have not been included in the staffing reductions, he said.
In late May, Informix laid off 100 staffers in the U.S. and cut another 60 jobs in Japan. The company warned that more job cuts might be imminent. Several weeks earlier, the company reported that it had lost US$140 million in its first fiscal quarter.
"Informix has in the last year ramped up considerably in hiring people to support Universal Server," said Dan Kusnetzky, director of the Operating Environments program at IDC. "They made a tactical mistake; they expected people to adopt Web-based architectures more rapidly than they did." The sales have not come through to support the new people, he added, and the cuts to technical support staff are unlikely to have a very negative impact on existing customers.
The analyst's outlook on Informix is generally positive, and he views their last few quarters as an anomaly. "They had such a ramp up in growth [previous to the most recent quarters] that any stumble looks huge," Kusnetzky said. "Informix has a lot of customers that like the product and like the company."
Informix, in Menlo Park, California, can be reached on the World Wide Web at http://www.informix.com/.