Manugistics Creates New Unit, Cuts Staff By 6%

Computergram International, Sept 25, 1998

Supply chain management software firm Manugistics Group Inc has announced a restructuring program that will see the formation of its first industry-focused business unit for the high technology and electronics vertical market - an area which the company says has been providing significant revenue growth recently.

The new unit joins consumer products, process and healthcare and motor vehicles and parts, all of which will be more closely aligned with the sales, consulting and marketing functions. Also as part of the restructuring, the Rockville, Maryland-based company will shed about 80 employees, or 6% of its total workforce. The job cuts will lead to a $1m charge to be taken during the current third quarter, which ends November 30. Manugisitcs has seen rocky financial times of late, posting net losses of $8.1m and $6.0m, respectively, for the first and second quarters of its current fiscal year. The company has complained of problems in the area of short-term sales execution. It also faces stiff competition following German software giant SAP AG's entrance into the supply chain automation market.