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.
“While we expect to report final results within our range of revenue guidance for the fourth quarter, we initiated this restructuring effort given the ongoing uncertainty surrounding near-term corporate IT spending,” Burke said. “This was a difficult decision to make. However, we believe taking these proactive steps is the right course of action as we drive toward long-term, sustainable profitability.”
ATG announced preliminary fourth quarter results Monday of revenues between $24 million and $24.5 million and a net loss per share of $0.35 to $0.40, which would be roughly between $25 million and $28 million. That includes a restructuring charge of between $22 million and $24 million.
ATG also announced Monday the promotion of Greg Lazar to senior vice president of worldwide sales and field operations. In addition to running ATGs own sales organization, Lazar will be tasked with driving more business through system integrators and other distribution channels, officials said.