i2 cuts 10% of its workforce

NEW YORK: Business-to-business software company i2 Technologies Inc. said on

Wednesday it would cut a further 10 per cent of its staff, or 587 jobs, in a bid

to speed its return to profitability.

The job cuts will affect all areas of the company but will primarily focus on

i2's sales force, company spokeswoman Jennifer Tejada said.

The job cuts, which follow a 14 per cent staff reduction last quarter, bring

i2's head count to 5,283.

News of the layoffs sent shares of Dallas-based i2 down 17 per cent, or

$1.75, to $8.53 in afternoon trading on Nasdaq, where the company's stock was

the most active issue.

The widely anticipated news came a week after i2, which makes software to

enable manufacturers to share their inventory and purchasing data over the Web,

reported a wider second-quarter net loss of $861 million. At that time, chief

executive Bill Beecher said the company would take additional steps, including

more job cuts, to reduce expenses.

Tejada did not rule out further job cuts in the future. "Obviously,

we're going to continue to focus on ensuring that our organization is aligned

with our cost structure," she said.

(C) Reuters Limited 2001.