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Ructions hit Software AG SA [ITWeb](ITWeb Via Acquire Media NewsEdge) Software AG SA is on track for triple-digit sales growth this quarter, says country manager Mohamed Cassoojee. Software AG SA's plans to retrench as many as 16 employees, in a bid to cut costs, has unsettled the company, and led to several top executives leaving the embattled group. Software AG says it is currently reviewing how best to optimise its operations and "may consider some structural changes", in a bid to "maintain and grow its position" in the market, although no final decision has yet been taken. However, court papers show the group, which had intended to double its local business by 2018, is also shutting down its African unit, despite this being a stated area of growth. The local arm of German-based Software AG, which had 121 employees at the end of December, had also retrenched seven employees in the past year, the documents filed as part of a recent labour court case show. This comes after last year's changes within the company, which led to the appointment of a new country manager and 10 sales staff leaving, although this is below the industry average. LinkedIn (http://www.linkedin.com/profile/view?id=8043329&locale=en_US&trk=tyah&trkInfo=tas:barry%20de%20w,idx:1-1-1) profile shows he moved to become CE of strategy and sales at 9th BIT Consulting this month. ITWeb understands De Waal is not the only employee to have left Software AG recently, but was unable to confirm this directly. Darren Roos (http://www.linkedin.com/profile/view?id=3494051&locale=en_US&trk=tyah&trkInfo=tas:darren%20roos,idx:2-1-2), who was COO for all the company's operations outside of Germany, is now COO of the Europe, Middle East and Africa region at SAP. Other senior people are also said to be moving on from the company, separate sources have told ITWeb. Ike Kunene (http://www.linkedin.com/profile/view?id=32428439&authType=NAME_SEARCH&authToken=B59a&locale=en_US&srchid=715926171395214665273&srchindex=1&srchtotal=2&trk=vsrp_people_res_name&trkInfo=VSRPsearchId:715926171395214665273,VSRPtargetId:32428439,VSRPcm), who was VP of national sales, recently became Telkom's managing executive for government business services at Telkom. listed (http://www.softwareag.com/za/company/za/people/default.asp) as the VP for SA, told ITWeb in the middle of last year that the local unit planned to double its business by 2018 and was moving offices to cater for an expected gain in staff numbers. Today, Cassoojee said as the company is in a quiet period, he cannot give specific figures. However, he added: "We are on track for triple-digit growth in our South African sales for this quarter and our South African services business is ahead of target for the quarter." Yet, De Waal, who had been with the company since 16 January 2012, asked Ntshongwana during a meeting why his cost-saving plans were not approved, according to another transcript in the court file. According to the papers, the aim was to build the South African and sub-Saharan African GCS unit into a R150 million-a-year business. De Waal wrote in a letter to management that this was on track in 2012. Software AG's results for 2013 show its total revenue for 2013 gained 3%, to €973 million, and its operating income was €261 million, representing an operating return on sales of about 27%. Net income after taxes was €134 million. "Should any limitations in terms of confidentiality become irrelevant, we would be happy to discuss Software AG South Africa's future strategy and plans. Our outlook for the South African subsidiary remains optimistic and we are committed to bringing ongoing value and support to customers in the South African market," added Cassoojee this morning. (c) 2014 ITWeb Limited. All rights reserved. Provided by Syndigate.info, an Albawaba.com company |