Descartes Systems Group (NASDAQ:DSGX) reported a jump in profits during the first quarter on May 27, but the Canadian supply chain software provider said it will reduce its global workforce by 5% as it restructures to bring down costs.
Descartes generated $11 million in net income, or $0.13 per share, during the quarter, a 51% increase from a year ago. Revenue grew by 7% to $83.7 million.
But the Ontario-based company said it has begun restructuring in response to the economic uncertainty from COVID-19. Descartes, which has about 1,500 employees, will trim its workforce and close some offices over six months.
“We have some customers who are struggling to keep up with demand in their business, while others have seen sharp drops,” CEO Edward Ryan said in a statement.
Descartes anticipates that the restructuring will ultimately save the company $6 million to $7 million per year.
Ryan discusses the results with analysts later today.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now