Siebel Cuts 800 Jobs, Plans to Close Sales.com Despite Strong Q1Siebel Systems, the customer relationship management software giant, dropped 800 employees late Wednesday and said that it would shut down its Sales.com subsidiary despite seeing its first-quarter 2001 net income more than double over the same period last year.
The San Mateo, CA-based company cut more than 10 percent of its 7,400-employee work force and predicted a softer market for its applications this year. The company also eliminated executive bonuses and cut salaries by 20 percent for senior vice presidents and above.
In a letter to customers, Siebel also said Sales.com, a Web-based sales force automation service that Siebel had tried to spin off as a separate company, would cease operations June 30. Tom Siebel, founder and chairman/CEO of Siebel, said the company was making necessary moves to continue delivering profits despite the weak economic environment.
The news came despite a banner first quarter for Siebel, in which net income rose to $76.9 million this year from $35.3 million during first quarter 2000, an increase of 118 percent. Income growth was driven by new business from several clients, including AT&T Wireless, Lufthansa Cargo and IBM.