Business software and professional services vendor Compuware Corp. is restructuring its business, closing some offices and laying off an undisclosed number of workers as part of a plan to shed unprofitable operations worldwide.
In an announcement Monday, the Farmington Hills. Mich.-based company said it is immediately reorganizing its North American and European professional services operations to cut costs as it tries to become profitable.
"As part of our review of Compuware's financial performance, we identified a number of professional services locations where we have not been able to build critical mass or achieve a level of profitability," Compuware Chairman and CEO Peter Karmanos Jr. said in the statement. "We do not expect these circumstances to change in the foreseeable future."
Compuware has 12,000 IT workers and about 110 offices worldwide. The company isn't announcing the number of layoffs or office closings until all affected employees have been notified, said spokeswoman Lisa Elkin. The cuts are expected to be completed within about two weeks in North America, she said. In Europe, layoffs and closings will conform to the laws of each country.
This is the first time since the company began in 1973 that it has restructured or laid off workers, Elkin said.
The layoffs will primarily affect professional services employees as well as support staff and salespeople working with them, according to the company. Severance packages will be offered, including job search assistance,.
"While these decisions have been difficult, Compuware is obligated to take action that helps ensure the future growth and profitability of the organization, for the sake of employees as well as shareholders," Karmanos said.