Descartes Continues Streamlining Efforts

Logistics solution provider announces management changes, reduces headcount by 130

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Waterloo, ON — May 15, 2003 — Canadian logistics solution provider Descartes Systems Group this week announced management changes as the company moves forward with a restructuring plan to cut costs amid slumping sales.

Willem Galle, Descartes' vice chairman, and Paul Laufert, executive vice president for corporate development, are set to leave the company "to pursue other opportunities," the solution provider said in a statement.

In addition, Manuel Pietra, Descartes' CEO and president, said in a separate statement that the company had implemented previously announced job cuts, reducing its headcount by about 130 employees, primarily by centralizing and consolidating finance and customer support functions and network infrastructure, creating three regional sales centers and outsourcing certain ongoing product development activities.

Descartes faces declining sales amid the continued enterprise solutions slump, reporting last week that it expected first quarter revenues to come in 15 percent below last year's figures. The company also said it would lay off 130 employees, and Descartes subsequently announced that it had engaged financial advisers "to assist it in reviewing means of improving the company's financial performance and enhancing shareholder value."

Galle joined Descartes in 1998 when the company acquired Calixon N.V., where he was CEO. At Descartes, he variously served as executive vice president for products, chief operating officer and, recently, vice chairman.

Laufert joined Descartes in 1997 with responsibility for executing the company's strategic acquisitions and capital market transactions, and over time his responsibilities grew to also include corporate communications.

Both Galle and Laufert have agreed to provide Descartes with assistance in transitioning their responsibilities following their departures, the company said.

Descartes is due to report its first quarter results on June 4.