CI job cuts fuel takeover rumours

16 October 2002
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17 October 2002 | Robin Parker

Commerce One is to cut 400 jobs over the next six months, further fuelling speculation that it is a prime target for acquisition.

The solutions provider is to lay off about 700 staff to "better align its cost structure with current market conditions".

Commerce One already laid off half of its workforce last year and a further third in April this year.

Rumours continue to circulate that SAP, which has a 20 per cent stake, plans a buy-out, but neither company would comment on this.

Sharyn Leaver, an analyst at Forrester Research, said Commerce One's future depended on its ability to market itself as an e-business software integrator rather than its traditional role of e-procurement vendor.

"As the market matures, the likes of companies such as SAP and PeopleSoft have caught up and are on more of a level playing field with Commerce One," she told SM.

"As it cuts jobs, it will be tough for Commerce One to make a case for pure e-procurement and to sell to the top-end companies on whose business it depends."

SMoct2002

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