Separately, PeopleSoft, which continues to ward off a $7.3 billion hostile takeover bid from rival Oracle Corp., announced that its acquisition of J.D. Edwards would produce greater cost savings than it had originally projected as the combined company jettisons jobs and office space. The company expects to cut between 750 and 1,000 jobs in 2004, which is expected to save PeopleSoft between $10 million and $15 million. Though it previously stated savings of about $150 million to $250 million from the merger with J.D. Edwards, PeopleSoft said on Thursday it expects to save between $167 million and $207 million over the next year. That will leave the company about 12,000 employees. Officials made a point of saying that there will be virtually no cuts of developers, sales representatives and consultants.PeopleSoft also announced that its board of directors approved a $350 million buyback of its common stock. That should leave PeopleSoft with $1 billion in cash after the stock buyback is completed at the end of the year. In related news, Oracle late Thursday announced that it had extended its offer for PeopleSoft stock to Oct. 17. It had been due to expire Sept. 19. Discuss this in the eWeek forum.
With the merger progressing so well, PeopleSoft said it would have higher than anticipated 2003 revenues with the final total coming in at a projected $2.145 billion to $2.175 billion. Sales for 2004 were pegged at between $2.8 billion and $2.9 billion. The company also predicts it will garner 36 percent of its revenue from new customers.