PeopleSoft cuts jobs, closes facility

PeopleSoft Inc. plans to cut 200 jobs worldwide and close its Santa Clara, Calif., office in response to bad economic times, the enterprise software maker said Tuesday.

Only internal administrative and support functions are anticipated to be cut, sparing customers from any negative effects of the “cost measures,” said Steve Swasey, a PeopleSoft spokesperson.

“We are not anticipating research and development, consulting or sales headcount reductions,” he said. “The focus will be as it always is, on customer satisfaction and customer growth.”

The employees in PeopleSoft’s Santa Clara office, currently about 100, will move to PeopleSoft’s Pleasanton, Calif., headquarters within the second quarter, Swasey said.

PeopleSoft expects to take a US$12 million charge in the second quarter for this restructuring, one of the first large cost-cutting actions by the software maker in a time in which many vendors are tightening their belts amid lower corporate spending on IT.

PeopleSoft employed 8,180 people worldwide as of March 31, compared with 8,293 at the end of 2002. The company on Tuesday reported net income for the first quarter of 2003 of US$38.5 million, down from US$44.5 million in the same period last year. Revenue dropped to US$460.3 million from US$483.3 million. License fees took a big hit, tumbling to US$80.8 million in the first three months of 2003 from US$133.3 million in the first quarter of last year. Maintenance and professional services revenue was up, evening out the overall revenue picture.

Peoplesoft’s Canadian headquarters is located in Toronto. The company also has offices in Calgary, Edomonton, Vancouver, Montreal and Ottawa. It is not known if these locations will be affected by the job reductions.

The company is online at

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

Cybersecurity in 2024: Priorities and challenges for Canadian organizations 

By Derek Manky As predictions for 2024 point to the continued expansion...

Survey shows generative AI is a top priority for Canadian corporate leaders.

Leaders are devoting significant budget to generative AI for 2024 Canadian corporate...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now