ATG Restructures, Cuts Work Force by 20 Percent
Art Technology Group says restructuring is result of "ongoing uncertainty surrounding near-term corporate IT spending."Art Technology Group Inc., in a move to reach profitability, announced a corporate restructuring Monday that will reduce its work force by 20 percent. The Cambridge, Mass., developer of e-commerce, content management and online customer relationship management software, is letting go of approximately 115 employees, mostly in the areas of professional services, internal sales support and operations, and general and administrative staff. The move comes just a month after the appointment of former Digital Equipment Corp. executive Robert Burke as ATGs new president and CEO.
Burke said in a statement that the work force reductions will lower ATGs quarterly expense run rate to between $23 million and $24.5 million, saving the company from $12 million to $16 million annually.