ATG cuts jobs, sees Q4 net loss

By siliconindia   |   Tuesday, 07 January 2003, 20:30 IST
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Art Technology Group Inc. (Nasdaq:ARTG) said Monday it will cut about 20 percent of its staff as part of a restructuring due to uncertain corporate spending.

CAMBRIDGE: The workforce reduction of approximately 115 people is focused primarily on ATG's professional services, general and administrative staff and internal sales support and operations. In addition to the headcount reduction, the company is closing and consolidating office space in selected locations. The company also announced that it has promoted Greg Lazar to senior vice president of worldwide sales and field operations. In his new role, Lazar will be responsible for managing ATG's global sales organizations and enhancing partnerships with systems integrators and other distribution channels. The company anticipates taking a restructuring charge in the range of $22 to $24 million for the fourth quarter of 2002. ATG expects to complete the restructuring actions in the first quarter of 2003 and begin realizing the full cost savings, estimated at $12 to $16 million annually, in the second quarter of 2003. Excluding the restructuring charge, the company said it sees a fourth quarter loss between 2 cents and 6 cents a share, compared to its previous guidance of results in a range of a loss of 3 cents and a profit of 1 cent a share. The company said it expects to complete restructuring in the first quarter of 2003, and will realize annual cost savings of $12 million to $16 million starting from the second quarter.