Progress Software announces new strategic plan, restructuring
Progress announced a new strategic plan "highlighted by a new product strategy and a streamlined operating approach with a tighter focus on areas of strength." The company explained that "Progress' core products compete within stable but mature markets, so Progress is adapting its organization and operating principles to focus primarily on customer and partner retention and success. For products such as Dev Tools and Telerik Platform, Progress will also strengthen its high volume, low touch e-commerce capabilities." The company further stated, "As part of the plan, Progress will undertake a new product strategy that will leverage its application development platform capabilities... Progress will accomplish this by providing the platform and tools enterprises need to build 'Cognitive Applications,' which are the future of application development." Finally, the company said that "with the adoption of its new product strategy, Progress will discontinue its investment in its Digital Factory offering and will re-align its resources consistent with its core operating approach. To that end, Progress will implement restructuring efforts that will include consolidating facilities, implementing a simplified organizational structure and reducing marketing and other external expenses. In addition, Progress intends to reduce headcount by approximately 450 employees, totaling over 20% of the company's workforce. Initial headcount reductions will begin in 1Q17 and should be substantially completed by the end of 2Q17, subject to local laws and consultation processes. After investments in our new product strategy, Progress expects to reduce net annual run-rate costs by approximately $20M by the end of FY17."