Retail supply chain software provider JDA Software Group Inc plans to cut its workforce by around 13% as the company embarks on a huge reorganization to save between $10 million and $12 million a year.
With revenue on the slide as retailers prune their spending, JDA plans to relocate about 150 developers and client support associates at offices around the US and UK and move them to its Scottsdale, Arizona headquarters. This relocation operation will cost $2.6 million and it faces a further $4.5m in charges for closing offices and firing 170 employees.
In October, JDA reported a large fall in licensing revenues as retailers reduce their sales forecasts and cut back on technology spending. However, the cut-backs have been dressed up as a customer value program. CEO Jim Armstrong claimed the company was breaking the traditional software industry model of having one group of employees involved in the sales cycle and a different group involved in implementation.
JDA also said that to ensure the successful and timely delivery of the next generation of its products, it is increasing its investment in several shared, core applications based on Microsoft’s .NET technology.