Interwoven, a known player in the Enterprise Content Management (ECM) market, has recently announced a round of layoffs for 2009.
To reduce costs, the company plans to eliminate approximately 70 positions across all functions and cut down on using contractors and consultants. The company had 1,012 employees worldwide as of December 31, 2008.
The Next One to Axe Heads
According to Interwoven’s recent SEC filings and Form 8-K, the company started communicating to its employees that it was “implementing a program to improve efficiency and lower its cost structure in view of current economic conditions.”
Interwoven is not alone in the head-axing battlefield. The economy is hitting hard almost every company in the Web Content Management and Enterprise Content Management markets. As we reported recently, some of Vignette’s employees got bad news for Christmas, when Vignette announced layoffs of about 10% of its 600-people workforce.
Even companies that appear to be thriving and are reporting record financial results are cutting down costs as well. EMC plans to cut as many as 2,400 jobs, representing approximately 7% of its entire workforce.
Eliminations Timeline and Big Bucks
Interwoven expects the workforce reduction to be completed by the end of Q1 2009. Additionally, certain actions resulting from this program will continue over the remaining quarters of 2009. Once all planned costs are reduced as intended, Interwoven anticipates cost savings be approximately US$ 8.0 million to US$ 10.0 million annually.
The company has scheduled the Q4 2008 earnings call for January 29, 2009. Preliminary results show the total revenues of US$ 69.5 million to US$ 70.0 million, with license revenues of approximately US$ 26.5 million.