On the heels of weak results for its North American operations, Sage has laid off 150 out of its 5,000 North American workers, citing the move as a response to the economic climate.
The dismissed workers came from all areas except Sage's troubled health care division, which lost 135 workers in July.
"It's recognizing the economic environment we are in and we are cost-cutting for efficiency," said vice president of corporate communications John Schoutsen.
The job cuts came as Sage North America's parent, the Sage Group, announced results for the year ended Sept. 30, reporting flat revenue for the North American Business Management Division, which markets the company's mid-market financial applications, including its MAS and Accpac lines. Sales of the Peachtree line were also flat compared to fiscal 2007. However, the Peachtree business did see a second-half increase as users migrated to the more-expensive Peachtree Quantum.
The Industry and Specialized Solutions Division, which includes construction and nonprofit applications, showed a 3 percent increase in revenue, while the payment solutions business was up by 7 percent. Health care revenue fell by 11 percent, but the company has said it's committed to building that business.
Sage reported 2008 revenue of roughly $1.9 billion, up 7 percent from last year as reported in British pounds. Pre-tax profit rose 3 percent to about $404.7 million. North American revenue dropped 3 percent to about $986.8 million, including health care. EBITA dropped to $172.7 million, down 14 percent. North American EBITA margins fell to 18 percent for the most recently ended year, down from 20 percent a year earlier.
Worldwide, Sage had a 6 percent increase in organic growth, excluding the health care division. When that unit was included, the increase in organic revenue was 3 percent. Organic growth in Europe showed a 10 percent increase. Since Sage did not have major acquisitions during the fiscal year, organic growth was close to the overall change in revenue.
