Symyx Restructures and Downsizes
Like Starlims, which announced a slowdown in sales last quarter (see IBO 10/15/08), Symyx is also a provider of informatics products, suggesting reduced spending by companies on software. Symyx’s Research business has been affected by the expiration of contracts, while the company cautioned in the third quarter that economic conditions were impacting its Tools business.
Santa Clara, CA 12/3/08—Symyx Technologies, a provider of informatics and automation products, instruments and services, has announced a restructuring that is designed to reduce 2009 expenses by an estimated $15 million, excluding restructuring charges. The company will combine its Tools and Research operations to form the High Productivity Research unit, which will be organized by the Life Sciences and Chemicals/Energy industries. Within the unit, Symyx will establish dedicated sales forces. Symyx also announced that it will reduce its workforce by 15%, with reductions made primarily in Tools, Research, and general and administrative functions. All actions are expected to be substantially completed by year end. The charges for the reorganization are being assessed, but total cash impact is expected to be $3–$4 million.
