Rumor: QAD cuts 30 heads

A Spectator reader just sent me the following information regarding headcount reductions at QAD, following disappointing quarterly results last month. The reader stresses, however, that this information has not been verified:

I just heard that QAD let go about 30 people in all. Most were long term employees who were at the top of the salary range. I understand that the cuts were largely in the R&D organization. QAD is the process of outsourcing at least some of the development to China. [name withheld], the guy who set up the outsourcing agreements, was one of the people axed.

As I’ve pointed out recently, QAD is not alone among application software vendors in hitting a rough spot in financial performance lately. QAD’s action shows just how sensitive publicly held software vendors are these days to short term financial results.

On the other hand, maybe the financial results just gave QAD management an excuse to reduce headcount in the U.S., if in fact QAD is offshoring some software development to China. However, if that were the case, I would expect the reductions to come from lower level developers, not guys near the top of the R&D organization.

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