i2 Technologies Inc., a provider of supply chain solutions, plans to lay off up to 15% of its 2,000 employees as part of a resizing plan expected to reduce operating expenses to below $70 million, down from $85 million in the fourth quarter of 2004.
According to i2’s new CEO Michael McGrath, the resizing is part of a plan to return i2 to profitability. “When I joined i2 at the end of February, I was given a mandate by the board of directors to resize and refocus i2, while at the same time establishing a strong foundation for future growth. We need to regain the respect and confidence of our shareholders, and this resizing is a major part of our commitment to making that happen.”
McGrath emphasized that the resizing plan is unlike the company’s previous cost reduction efforts because it is primarily focused on reducing i2’s organizational structure and overhead to make the company more efficient.