Commerce One warns more jobs face the axe

NEWS Commerce One may be forced to slash up to 40 per cent of its workforce after admitting earlier this month that original predictions of a 15 per cent job cull would not be enough to cut costs. The B2B provider, which currently employs 3,600 people, is also looking for closer links with financial backer SAP after issuing a warning on third quarter results, according to a report yesterday in German magazine Focus. Citing company sources, the Focus article reported that up to forty per cent of Commerce One staff were facing the axe, and management were considering merging operations with SAP, which owns a twenty per cent stake in Commerce One. Commerce One could not be reached for comment, but CEO Mark Hoffman told silicon.com earlier this month that while SAP was a vital financial partner there are no plans for the two companies to merge. "Our goal has always been to be an independent company. I'm not soliciting buyers," he said. Hoffman said that while business has slowed down he remains confident of an upturn in the first half of 2002. The company last week announced that third quarter results would be worse than anticipated. It had previously admitted that job cuts would be higher than 15 per cent of the workforce. Losses are now expected to spiral to 25 cents a share on revenue of $80m to $83m, compared to analysts expectations of a loss of 23 cents a share on revenue of $90m.