ERP solutions provider Kana Communications Inc. Wednesday laid off 220 employees, about 20 percent of its workforce, as part of an effort to slash expenses by $30 to $40 million annually.
The cuts came from all Kana’s departments. The company said it is planning other steps as well. Chief Executive Officer and Chairman Jay Wood — who took his positions at Kana on Jan. 18 after Silknet Software Inc., where he served as CEO, was acquired by Kana in April 2000 — said the moves will bring Kana’s staffing and structure in line with industry standards.
“We are committed to providing our customers with top quality service and support,” Wood said. “We are confident that we can maintain a superior level of service for our customers with a more focused staff.”
The steps include reorganizing Kana’s professional services organization to improve expense controls and accountability, refocusing the sales organization with the goal of aggressively marketing the entire range of Kana’s products, revising the sales compensation structure, consolidating product development to focus on an integrated offering, and slashing real estate commitments.
Wood has also overseen a restructuring of Kana’s management. David Fowler has been named president, Art Rodriguez is serving as interim chief financial officer, and Nigel Donovan is the chief operating officer. The three are working to implement Kana’s new, slimmer image.
“I am very committed to identifying every opportunity for Kana to streamline its business and operations,” Wood said. “Despite the economic slowdown, we believe that with the new team in place and the initiatives taken to date, Kana is well positioned to address our Web-architected relationship management opportunity.”