On the heels of its $84-million acquisition of San Diego rival DataWorks Corp., Platinum Software Corp. in Irvine will cut 15% of its worldwide staff and restructure its executive suite.
Both firms make software that streamline operations at mid-size corporations, particularly companies with annual revenues under $500 million. The deal, completed Dec. 31, transforms Platinum into one of the industry's largest makers of business management software.
Platinum told its workers last week that it would eliminate about 300 jobs from its newly combined staff of 2,000 employees. The cuts--some of which will come through attrition--will happen this week and will come from across the company, officials said.
Platinum employees say a quarter of the cuts will come from its Orange County and San Diego facilities, which employ 660 people. The remainder will come from the firm's other U.S. and international sales and development centers.
The company plans to keep DataWorks' San Diego facilities, using them as a key software and product development center, Platinum officials said Tuesday.
To complete the deal, Platinum issued about 11.75 million new shares. Following the merger, Platinum has approximately 42 million outstanding shares.
In addition, Platinum has named Stuart Clifton, DataWorks' former chief executive, as vice chairman and a member of the Orange County firm's board of directors. Norman Farquhar, DataWorks' chief financial officer, is now chief financial officer for Platinum.
Platinum also said it adopted DataWorks' calendar year reporting schedule, and will report earnings for the most recent quarter Feb. 4.