Ariba Announces Layoffs

Share this content:
Ariba Inc., a business-to-business e-commerce platform provider, will slash about 700 employees, 30 percent of its work force.


It also called off its planned acquisition of Agile Software in an effort to combat lower-than-expected second-quarter earnings and overall deteriorating market conditions.


The company said revenue for the second quarter would total around $90 million, roughly half of the $180 million windfall originally projected for the period by Wall Street analysts.


"At the end of the quarter, we experienced a large unexpected drop-off in our sales closure," said Keith Krach, chairman/CEO of Ariba. "While many customers selected Ariba's technology, spending decisions at the executive level were postponed as customers evaluated their budgets in light of the prevailing economic uncertainty."


The company also planned to take a one-time write-off for investments, real estate commitments and other items, Krach said.


In addition, Ariba's proposal to acquire California-based Agile Software, at a stock value of $2.55 billion, will be killed without either party paying any termination fees, executives at both companies said.


"Under the current conditions, the predictability of our business going forward is very limited, so it's important to realign our own expense structure immediately," Ariba chief financial officer Bob Calderoni said.


Ariba officials had said they planned to integrate Agile's collaborative services into its BTB commerce platform and to expand its network. Agile also was expected to bring a number of top-level technology clients into the mix, including MyAgile.com, which offers online marketplaces, custom part procurement, wireless access and components research.


Loading links....
close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here