Epicor Software Corp., an Irvine maker of business software, said Thursday it’s set to cut jobs in a bid to save money.
Epicor’s shares slumped more than 6% in midday New York trading on the news. The company had a recent market value of about $270 million.
The company, which makes software for hotels, retailers and manufacturers, said it’s looking to put in place a plan for “a reduction in its workforce, stricter controls on discretionary spending and technology initiatives designed to improve efficiencies and reduce operating expenses.”
Epicor didn’t say how many workers are set to be cut. It has some 277 employees in Irvine and about 3,000 worldwide.
A spokesman for Epicor said the job cuts “were spread across all the geographies in which we do business.”
The move is expected to save the company $16 to $20 million a year, after an initial payout of $4 million in restructuring charges.
“A thorough review of our global organization identified areas where we could increase efficiencies through streamlined operations and technology initiatives, while better aligning our resources to respond even more rapidly to the opportunities and challenges before us,” Chief Executive Thomas Kelly said.
Epicor’s been struggling of late.
Shares are off some 40% in the past 12 months.
Investors hammered Epicor’s shares a few weeks ago when it gave a worse-than-expected outlook for the balance of the year.
Epicor’s board of directors has been fielding a hostile buyout bid by New York hedge fund Elliott Associates LP.
Directors have advised shareholders not to approve the takeover bid and have made three separate rejections of Elliott’s offers.
Earlier this month Elliot slashed the price of its original offer by 20% to $7.50 a share, down from its initial bid of $9.50 a share.
The new price values Epicor at $440 million.
Elliott already owns 10% of the company, making its offer for the remaining 90% worth about $400 million.
Elliott also owns $28.7 million in debt that converts to Epicor stock.
