TTI Team Telecom International (Nasdaq: TTIL), a supplier of support systems for telecom service providers, today announced that it would cut 10% of its workforce as it cut costs in response to the economic slowdown.
"The downturn in the telecommunications industry has adversely affected telecommunications service provider organizations across the board," stated TTI Telecom CEO Meir Lipshes,. "What characterizes today's marketplace is the fact that service providers are more cautious in making investments in operations support systems (OSS) and are taking much longer to make purchasing decisions."
Lipshes continued, "The reductions will not impact TTI Telecom's ability to service customers, acquire new ones, or continue existing R&D initiatives. The organizational restructuring is designed to enhance the company's efficiency and productivity to help it weather the current harsh telecom environment and return to profitability."
TTI says its restructuring plan includes a 10% workforce reduction across all departments, together with efficiency measures that will enable the company to maintain core operations worldwide, improve product quality and shorten delivery timetables to best serve its existing customer base.
The effects of the SARS epidemic are also being factored into the plan, TTI says.
Under the plan, TTI’s Product R&D department will consolidate all software development efforts in the company to form a single cohesive unit that will have sole responsibility for the development of the company’s OSS products and solutions.
The Project department will expand to include the global professional services team, and will focus on delivering customer solutions side-by-side with comprehensive integration services, the company says.
The Sales & Marketing departments will be affected to a lesser extent by the workforce reduction, although the company plans to achieve efficiency gains by consolidating various regional responsibilities and redeploying sales resources to high-growth areas.
The company’s strategic marketing team, which will be in charge of delineating new opportunities in both existing and new markets, has been expanded.
As part of its restructuring plan, TTI will shift its focus to recruiting and hiring local professionals in countries where it has interests. Local personnel will be responsible for software development, product integration and on-site customer support services.
TTI shares closed on Nasdaq on Wednesday at $4.78, reflecting a $56 million capitalization.
Published by Globes [online] - www.globes.co.il - on 1 May, 2003