GXS to cut work force by 20%
With a renewed focus on retail and other industries, Global eXchange Services will cut its work force by about 300 positions, or 20%, by the end of this year and take a restructuring charge of up to $32 million as it consolidates to lower its operating costs, the company said today.
The restructuring is not expected to interrupt or decrease services to existing customers or result in a discontinuation of any service categories, the company says. GXS, which provides supply chain software and services, is moving beyond its traditional services like EDI to cover more Internet-based data communications, Bobby Patrick, senior vice president of marketing, tells InternetRetailer.com.
GXS will launch this fall a web-based product information management application for retailers to complement its existing product information management application for suppliers, Patrick says. Along with expanded services in helping retailers and their suppliers to synchronize product data, the product information management development will require the hiring of new product development personnel, he adds.
In the near future, GXS will also introduce web-based applications for inventory visibility, order management and collaborative demand planning, Patrick says. He adds that GXS gets about half of its revenue through products and services for the retail supply chain.
“This restructuring is a necessary part of our broader transformation effort to improve the company’s competitive position,” says president and CEO Gary Greenfield, who joined GXS in January with a reputation for restructuring expertise. “We are consolidating our development, operations and support functions to fewer, more centralized locations designed to enable us to be more efficient and more responsive to customer needs. Our sales and marketing teams will focus on targeted industry segments to better serve our customers, including retail, high technology and automotive.”
Back...
