PALO ALTO, Calif. -- Tibco Software Inc. TIBX +1.67% said it plans to lay off 200 employees, or about 15%of its work force, and reduce executive salaries because of the slowing U.S. economy.
Tibco said the job reductions include 50 contract workers. The maker of e-business software said its fiscal second-quarter results will include a one-time charge of roughly $6 million to $9 million to cover restructuring costs. The company's second quarter ends June 2.
"During our last earnings conference call, we said it is a time for leaders to lead and to take whatever actions are necessary to emerge from the economic downturn even stronger than before," Vivek Ranadive, Tibco's chairman and chief executive, said in a brief statement. "We are doing that." He added that Tibco remains confident about its long-term business strategy.
Tibco, which is backed by Reuters Group PLC, sells software that helps Web sites handle massiveamounts of data in real time. The company didn't specify how deep the salary cuts would be.
The cost-cutting moves follow the resignation Wednesday of chief financial officer Paul G. Hansen, who left to pursue personal interests. Chris O'Meara, Tibco's vice president of finance, is serving as interim finance chief.
Last month, Tibco reported fiscal first-quarter earnings that beat analysts' lowered estimates. The company said then that numerous customers had postponed purchases of Tibco's software amid the uncertain economic climate.