This is the first time I’ve seen Sage proactively disclose so much information about job reductions. Previously it was all whisper numbers but not generally discussed. Certainly not in print.
What’s it mean?
250 people will leave North America
It sounds like a move toward even more centralized ( UK ) leadership.
My WAG - take the $ from the 250 that leave NA and invest it in R&D and sales effort for your flagship products. That would be Intacct, People and X3 as well as any strongly complimentary products ( Intacct Construction, Intacct Supply Chain ).
Most of the legacy products ( like Sage 100 ) have good lock in. It’s tough for customers to leave. Sage could pay less attention ( and less people ) and probably make about the same $. I bet this is the plan.
At some point it had to be troubling to the Sage Group board to compare the market cap of someone like Intuit to the market cap of Sage Group. I’ll let you Google the $. It’s not pretty.
Full year results are due out Nov 17.
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Wayne Schulz
Schulz Consulting
860-516-8990
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