In a move not without precedent in the technology market, Epicor Software on Thursday announced that it will lay off workers and seek more cost efficiencies, in a move that it hopes will save the company $16 million to $20 million annually.
In a statement that left most of the particulars to the imagination, the mid-market ERP provider said that after a strategic review of company operations, it has decided to reduce its workforce and implement “stricter controls on discretionary spending, and technology initiatives designed to improve efficiencies and reduce operating expenses.”
"Given the current economic environment, it is more important than ever to maximize our flexibility to adapt to whatever market conditions we may face in the most efficient and effective manner, with an eye towards driving maximum profitability,” said CEO Thomas Kelly, in a statement.
An Epicor employee who was caught in the layoff net told Managing Automation this week that Epicor plans to cut 10% of its workforce. An Epicor spokesman would not comment today on the size of the reduction.
The spokesman said the “technology initiatives designed to improve efficiencies” would include expanded use of videoconferencing to cut down on travel costs.
The restructuring will cost $4 million, which will count against the company’s fourth-quarter numbers, according to the statement.
With the layoff announcement, Epicor joins other technology vendors that have sought relief from the economic slowdown by cutting jobs. Machine vision stalwart Cognex revealed today that it would eliminate 60 positions, or 7% of its global workforce, in the hope of gaining $6 million per year in savings, beginning in 2010.
Sun Microsystems, a leading provider of servers, revealed today that it would lay off 5,000 to 6,000 workers, or 15% to 18% of its ranks.
And German engineering and automation purveyor Siemens revealed this summer that it would dismiss nearly 17,000 employees as part of a drive for cost control.
As it seeks to shrink expenses, Epicor is also fighting to maintain control of the company, as private equity firm Elliott Associates maneuvers to buy out the ERP purveyor.