One day before it is scheduled to report its third quarter financial results, e-marketplace company Commerce One says its will restructure its company and lay off about 46 percent of its staff.

In a statement released Monday, the Pleasanton, Calif.-based company says it remains focused on R&D but says it can't keep 1,300 people on its payroll and stay profitable.

The reductions will primarily focus on the company's professional services, marketing, sales and administrative staff.

"We are maintaining our focus on delivering the products and services our customers need to be successful," says Commerce One chairman and CEO Mark Hoffman. "By aggressively investing in our collaborative commerce product line, we feel that we are well positioned to compete in the current economic climate and, more importantly, during a recovery."

Commerce One is expected to report a third-quarter loss excluding charges, of about 25 cents a share, on revenues of $80 million to $83 million. A sampling of analysts had expected the company to post a loss of 23 cents a share.

But, the news is just a prelude to a major takeover by Walldorf, Germany-based software maker SAP, according to an article published in German weekly Focus.

The report claims SAP will look to take over Commerce One's assets based on SAPs recent binges with its software subsidiaries.

The company reinvested 225 million (EUR) to increase its stake in CommerceOne to 20 percent from 4 percent this summer as well as spending 53 million (EUR) for a minority stake in Siemens.

LATEST NEWS

UCSD Plans First Flash-Based Supercomputer
Digging Into N.Y.'s Antitrust Suit Against Intel
Analyst: Sony-Ericsson's Android Bid Is Late
Coupon Site Targets Black Friday, Cyber Monday
Microsoft Sites Up Big in Time Spent Online

Representatives with Commerce One or SAP both called the report speculation and declined to comment further.

The only thing Commerce One could say is that it plans to complete the reductions during the fourth quarter of 2001. The company previously reported a 10 percent reduction of its staff this year.