Wind River sees slowdown, cuts jobs and pay
Wind River Systems yesterday announced a "significant slowdown" in near-term customer spending, and new cost-control measures, including job cuts, executive pay cuts, and a week-long shutdown during July in its North American offices.
"We are seeing customers postpone investments for new projects, which brings down their short-term spending in research and development," says President and CEO Tom St. Dennis in a statement. The company's orders for its professional services business likewise decreased.
The company will report its first-quarter earnings on May 17, but expects revenue for the quarter to grow 18 percent to 20 percent over a year ago.
Wind River also plans to cut 12 percent to 15 percent of its global workforce, cut executive pay 10 percent and close for a week during the July 4th holiday. Employees will be encouraged to use time off on certain Fridays through the summer, the company says.