J.D. Edwards & Co. (Nasdaq: JDEC) fell 1/2 to 12 Tuesday after announcing a restructuring that includes about 800 job cuts.
The e-commerce software maker said the move is aimed at “strengthening its position in the Internet economy.”
“Our greatest strength is our ability to deliver solutions that interoperate and collaborate with other software products,” said C. Edward McVaney, chairman, president and chief executive officer.
The company said that while its revenue from software licenses has risen about 20 percent so far this year, higher than most competitors, its “cost structure is out of line” with that rate of growth. “We’ve therefore made the decision to drive expense out of the organization and establish a lower overall cost structure,” said McVaney.