Reply #74: Siebel Systems still in layoff mode [View All]

[UpInArms]

http://www.insidebayarea.com/businessnews/onthemove/ci_2965197

Siebel Systems Inc., the world's No. 2 maker of customer-service software, reiterated plans to cut $10 million in costs this quarter and said it will keep eliminating jobs and trimming research spending in the coming months.

"We're taking the right actions to improve our revenue performance over time," Chief Executive Officer George Shaheen said Monday on a call with analysts. While the company may consider acquisitions, "our primary focus remains on improving our organic operations."

Pressure to reduce costs gathered steam after San Mateo-based Siebel failed to clinch orders from large customers such as government agencies in the past two quarters. Shaheen took over in April after the company ousted former CEO Mike Lawrie, who held the post less than a year, and in July announced a job-cutting program.

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Siebel lost the lead in the $10.5 billion market for programs that run customer-services functions to SAP AG in 2004 after four years of declining sales, according to Boston-based AMR Research Inc. The lineup at Walldorf, Germany-based SAP includes programs that handle accounting and personnel, products Siebel doesn't offer.

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