Milpitas-Based Phoenix Technologies to Cut 14% of Workforce

Milpitas, Calif. -- Phoenix Technologies, a Milpitas-based maker of core system software, said on Friday that it will cut its workforce by 14%, from 471 employees to 403, in an effort to further reduce expenses. The company said that most of the cuts will relate to its enterprise applications business, and will include employees in all regions. Combined with other cost reductions, the company said that it expects to cut its operating expenses by 24% in the third quarter.  The move comes as Phoenix slashed its revenue guidance for the fourth quarter from $12.5-$14.5 million to $8-$9 million. Woody Hobbs, the company's new president and CEO, attributed the shortfall to earlier decisions by management. "We have made the decision to eliminate the use of fully paid up licenses and the associated price discounting and this has impacted our fourth quarter revenues," said Hobbs.
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