MicroStrategy axes 234 jobs

Data analysis software vendor MicroStrategy will reduce its workforce by 234, or approximately 10% of its current headcount, by the end of September, the company announced this week.

          Data analysis software vendor MicroStrategy will reduce its workforce by 234, or approximately 10% of its current headcount, by the end of September, the company announced this week.

          The aim of the restructuring is to improve its business and restore confidence with the financial community, MicroStrategy said in a statement.

          Jobs will be eliminated in the general and administration, marketing and consulting departments, and the company will take a charge of between $US4 million and $8 million related to the restructuring, according to Michael Saylor, the company's president and chief executive officer.

          Other measures announced include the following:

          • launching an online store for its business intelligence software
          • launching its flagship MicroStrategy 7 data analysis product for Microsoft Windows NT
          • providing free development software for qualified partners under a seeding programme
          In addition, the company expects to save millions of dollars annually by axing its corporate junkets, which have included Caribbean cruises and weekend get-togethers for the company's staff.

          The company has endured a roller-coaster year -- its stock stood at $333 in the middle of March and lost 62% of its value in a single day when the company announced it was restating previous years' revenue figures and that it was under investigation by the Securities and Exchange Commission. This in turn led to a class-action lawsuit by company shareholders.

          The stock has continued to slide to under $30 but was buoyed recently by an announcement from IBM that it would offer MicroStrategy 7 as part of one of its business services.

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