April 1, 2005

As part of its restructuring program, B2B software firm i2 Technologies yesterday said it will reduce its global work force by 15 percent.

The reductions are expected to bring the company's operating expenses from $85 million in fourth-quarter 2004 to below $70 million. A company spokeswoman said i2 would not disclose where the cuts were taking place until its first-quarter earnings announcement in April. Most workers were notified Thursday.

The company said its expects to take a restructuring charge in the first quarter of 2005 related to the plan.

Along with the work force reductions, i2 said there will be other program and operating expense reductions in most of its organizations and regions.

The new plan is unlike the company's previous cost-reduction plans because it focuses on reducing i2's organizational structure and overhead to make the business more efficient.

The next step will be to make improvements to the company's core business processes to allow more productivity while incurring less cost, i2 CEO Michael McGrath said.

"We take our responsibility and commitment to our customers seriously and believe that becoming profitable allows us to better serve our customers in the long term," McGrath said.

Dallas-based i2 has more than 2,000 employees. The company posted a net loss for fiscal 2004 of 3.1 million, reflecting lower operating margins.

Source: Dallas Business Journal