Software company Iona Technologies is to lay off 150 of its staff worldwide as part of a restructuring plan that is estimated to cost in the region of US$11-US$14m. Iona hopes that this will cut its cost base quarterly to around US$20-US$22m compared to US$24.3m in the first quarter.
Last year the company, which employs 618 people worldwide and 180 in Dublin, shed 200 jobs.
At a conference call this afternoon chief financial officer Dan Demmer said that at the end of the year the company expected to have a total head count of 450
Announcement of the job losses follows the publication of the company’s first-quarter results, which show a net loss of 36 cent per share. Revenue was halved to US$17m.
Chief executive officer, Barry Morris said: “In the first quarter the combined effects of the current macroeconomic climate and geopolitical uncertainties led our customers to delay or reduce their IT spending. This was especially true of organisations in the US telecommunications sector.”
Demmer added: “We are operating in a very tough economic environment. But we are taking the actions required to return Iona to profitability as quickly as possible while maintaining our long-term growth potential.”
The company forecasts that revenue will be in the region of US$17-US$19m in the second quarter of this year.
By Suzanne Byrne
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