Software vendor Hyperion Solutions is axing up to 15 per cent of its global workforce to cut costs.
The losses, which the company blamed on the US slowdown, will cut almost 400 workers from the firm's 2651-strong workforce. Hyperion produces software that allows firms to analyse business data more effectively.
"We are taking these steps because of the continuing slowdown in the US economy," said chief executive Jeff Rodek. "We expect these changes to put us in a position to succeed in the short term and lay a stronger foundation for the future."
Other money saving measures include cutting back on discretionary spending, restricting business travel and reducing capital expenditure. The company is also planning to impose a hiring freeze.
Linda Snyder, director of investor relations at Hyperion, confirmed to vnunet.com's sister publication Computer Reseller News that the cuts would hit the UK.
"This is a worldwide reduction and will have an impact on our UK operations," she said, claiming that different "functional areas" will be impacted to a "greater or lesser extent based on business strategy".
The cuts will be imposed at the end of June in the US and shortly after in the rest of the company, Snyder added.
Just six weeks ago, Hyperion reported a loss of $1.3m (£900,000) in its results for the third quarter ended 31 March, compared with a profit of $6.6m in the same quarter the previous year.
Steve Barrie, chief analyst at Bloor Research, said that companies such as Hyperion appeared to be creating a panic situation by acting too early. "People seem to be cutting back in anticipation of a slowdown as far as Europe is concerned," he said.
It is not surprising that companies like Hyperion are shedding staff in the US, Barrie said, but they are jumping the gun in Europe.
"The European market is still quite strong but, because firms are assuming there will be a slowdown, they are almost creating the situation themselves," he said. Please note: this story was previously published on vnunet.com with an incorrect date.
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