Brokers says Sage could restructure
Jobs could go as part of a move to cut costs
Reports have emerged that software seller Sage Group is planning job cuts,
according to the Financial Times. It is the only company among its
peers that has not yet embarked on a cost cutting program.
Deutsche Bank, Sage’s house broker, is predicting a restructure sometime
during 2009. It estimates that Sage might be able to cut up to 455 staff, or
three per cent of its total, at an exceptional cost of £18m.
Sage would then have to recover 60-70% of its restructuring costs in order to
meet its stated forecasts.