Geac NZ plays down reports of big layoffs in its ERP development team. ADAM GIFFORD reports.
Software maker Geac is putting a brave face on corporate culling, which could see more than 40 Auckland-based software developers laid off.
The redundancies come seven months after the company talked of investing $50 million in the local project and hiring 100 developers.
Geac New Zealand general manager Viv Gurrey refused to confirm the number of layoffs caused by Geac's decision to "refocus" the development of the Windows NT-based StreamLine enterprise resource planning (ERP) software on the business needs of the Asia-Pacific region.
Firms use the software to automate manufacturing processes and help manage staff.
"We are in the process of redeploying people. We are going through discussions with individuals, and I don't think it's fair to go into specific details," Mrs Gurrey said.
Claims that more than half the current 82 developers would go were "way off."
Word from Geac's Grafton Rd offices is that StreamLine staff were taken across the road last week to hear of the redundancies, then told individually whether they were to stay or go.
All were required to work through to July 28, when the next release of the product is due. The code is currently frozen, and staff are working through the labour-intensive testing and bug-fixing stages.
On a visit to Auckland in October the Canadian-based company's new chief executive, Doug Bergeron, signalled a $50 million investment in the project over the next five years, with 100 more developers to be taken on.
Mrs Gurrey said the $50 million development budget was still in place, but objectives had changed.
"Nine months ago we decided we were going to do everything for everybody, make it a catch-all solution," she said.
"We were going to develop for the North American market. Now we're saying, why do we want to handle the US tax system? "There's more potential with GST coming into Australia. We're saying, let's focus on the region we are in.
"We were trying to do too many things for too many people. Now we'll leave that to our competitors like SAP, JD Edwards and Baan."
She said StreamLine's strength was automating the processes of manufacturing and distribution companies.
So far, StreamLine has sold to about 35 sites in Australia, New Zealand, Britain and South Africa.
"The ERP market is in trauma. We are one of the most profitable businesses in ERP. We are closing new business, others are not," Mrs Gurrey said.
While StreamLine is making sales, Geac has put the product in a separate ERP division with JBA Holdings, a loss-making English manufacturing software vendor it bought last year, with JBA executives in control.
Geac's third-quarter results, released in March, showed sales rose 32.5 per cent on the previous year to $C281.9 million ($392 million). More than $100 million came from JBA sales. However, net income was down from $49.3 million to $38.9 million.
As well as running the New Zealand office, Mrs Gurrey has been made StreamLine's general manager of operations, sales and distribution in Asia Pacific.
Former New Zealand head Graeme Riley, who instigated the StreamLine initiative, is now Geac's Asia Pacific managing director.
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