Barra to lay off nine percent of workforce
09 April 2003 | 3368 views | 0
Financial risk management vendor Barra has announced plans to reduce its workforce by approximately nine percent from 519 employees to 470 employees worldwide.
The company estimates that the cuts will deliver annual pre-tax cost savings of approximately $5 million. Barra expects to record a restructuring charge related to severance and other costs of approximately $2 million in the first quarter ended 30 June, 2003.
"Despite challenging market conditions we have maintained peak investment in new products over the past two years," says Kamal Duggirala, chief executive officer of Barra. "We have now reset our priorities to focus on the follow through from those investments. Based on current market conditions and the decline in Posit royalties we believe that these steps position us for modest growth and strong profitability in the core business for fiscal year 2004."
The California-based company will publish its fourth quarter and fiscal year-end results on 24 April 2003.