Tech layoffs begin to hit home

By ADAM GIFFORD

The wave of layoffs hitting the technology sector in the United States has splashed these shores, with business-to-business software specialist Ariba closing its New Zealand operation.

Australian chief executive Allan Smith delivered the bad news yesterday to country manager Mark Heard in Auckland and technical specialist Paul Toohey in Wellington.

New Zealand sales and customers will now be dealt with from the Australian office, which also lost five staff last week.

An industry source said the Government was about to issue tenders for its e-procurement system, so "there couldn't be a dumber time to pull out."

Mr Smith said the decision was driven by the company's US head office.

"Ariba is attempting to align expenses with its revenue projections globally. It made $US85 million last quarter, and is expecting to make $US65 million to $US70 million this quarter."