BMC Software to cut jobs in $38m restructuring

By Graeme Burton
11 Apr 2013 View Comments
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Systems management software vendor BMC Software has announced job cuts following the conclusion of a review into its operations. The restructuring will result in a pre-tax charge estimated at between $33m and $38m (£21m and £25m).

However, BMC did not put a number on the redundancies, although it has 6,900 full-time employees, according to financial reports.

Further reading

The filing was made to the Securities and Exchange Commission, the US stock market regulator, late on Tuesday.

The review and resulting restructuring was instigated following a shareholder revolt late last year, led by activist investor Elliott Associates. Its "standstill agreement" with BMC Software's management, which suspended hostilities between Elliott and BMC, ended on 6 April.

In a separate filing, Elliott said that it reserves the right to open further talks with BMC's management. Elliott had sought to force BMC into a sale after racking up a 9.6 per cent stake in the company, according to Bloomberg.

The ruckus instigated by Elliott had provoked the interest of a number of private-equity groups, according to reports, with KKR & Co and TPG Capital teaming up to form a consortium to bid for the company, and Bain Capital and Golden Gate Capital also joining forces to enter a bid.

 

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