Banking system vendor Temenos is reducing its workforce in a cost-cutting exercise, according to sources close to the company. Thirty-four jobs will go from the London and Hemel Hempstead offices, with other cuts expected in mainland Europe and the US.
Finextra's sources say that up to 200 jobs will go globally, but Temenos CEO Andreas Andreades says the figure will be less than that.
"We have said that for 2009 we are targeting a reduction in our cost base of around 5%-6%, or $20 million, when compared to the combined costs of running Temenos and our two recently acquired businesses Informer and Financial Objects in 2008," he says.
Cuts are mainly targetting administrative and training roles within Temenos, with more jobs being moved to the company's Chennai operation, as well as staff reduction in the banking systems division of Financial Objects as that company's operations are merged into the group.
Andreades says that the company is taking an opportunity to "remove excess costs that have accumulated as the business has grown over the past few years and to channel spending into growth areas of the business."
The company announced last month that revenue for the third quarter was $100.4m, up from $70.8m in the same period last year, representing growth of 42%. The company remains bullish about prospects, saying that good visibility and a strong pipeline gives no reason for the firm to adjust its expectations for FY09.