PracticePeople In PracticeBaan job axe fears

Baan job axe fears

Threat to 1,000 jobs in UK as Invensys completes Euro760m takeover of software firm.

More than 1,000 IT specialists face the axe this summer when Invensys, the UK controls and automation group, completes its takeover of ailing Dutch software group Baan.

The 4,300 Baan workforce is likely to bare the brunt of job losses within a new Invensys Software and Systems division, which will employ around 12,000 worldwide. Invensys has bid Euro760m (£472m) for Baan and will take on ff96m (£60m) of debt.

Alan Yurko, chief executive of Invensys, accepted the possibility job insecurity could force more Baan staff to leave.

‘What person in the software industry is not looking for another job?,’ he said. ‘In the US they view a long-term employee as someone who comes back after his lunch-break.’

Previous Baan chief executive, Mary Coleman and predecessor Tom Tinsley, pushed through cost cutting measures to deal with a fall in orders, shedding staff to find $60m (£40m) savings.

Yurko said poor management was to blame for the Dutch company’s collapse.

‘Management did not manage, costs did not come down.’

He said the previous lay-off of 450 staff and closure of 12 offices was inadequate, because it was ‘achieved by attrition when much more aggressive action was needed’.

‘Costs didn’t go down because Baan actually went out and replaced those people and spent more to do it.’

Invensys claimed in January, Baan, after a corporate overhaul, including the resignation of Coleman, realised it could no longer survive as an independent entity and reverse six consecutive quarter net losses.

Invensys has to secure a 95% backing from Baan shareholders and is believed to have an 18% stake in the company.

Baan shareholders hold an egm today and need to respond by July 13. Yurko dismissed as ‘background noise’ reports this month that a group of 22 Dutch shareholders with a 19.6% share in Baan would launch a rival rescue bid.

Big Five of ERP hit rocky patch

Related Articles

Is inefficiency stealing your time and money?

Accounting Firms Is inefficiency stealing your time and money?

6m Emma Smith, Managing Editor
CIMA elects new president

Institutes CIMA elects new president

6m Emma Smith, Managing Editor
Transparent currency trade: How to achieve costs visibility

Governance Transparent currency trade: How to achieve costs visibility

6m Emma Smith, Managing Editor
Introduction to KPMG UK’s new leadership team

Accounting Firms Introduction to KPMG UK’s new leadership team

6m Emma Smith, Managing Editor
EY appoints head of UK Infrastructure Asset Intelligence practice

Accounting Firms EY appoints head of UK Infrastructure Asset Intelligence practice

8m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
MHA MacIntyre Hudson advises on management buy-out

Accounting Firms MHA MacIntyre Hudson advises on management buy-out

10m Emma Smith, Managing Editor