Marketplace Market Takes Another Blow

Commerce One reports staff reductions of 46%, spin-off of services operations

PLEASANTON, Calif.  October 15, 2001  Commerce One Inc., an e-marketplace company that makes e-commerce software and operates online purchasing exchanges, today announced planned staff reductions totaling approximately 1,300 people, which constitutes about 46% of its workforce. The reductions will be achieved through approximately 700 job eliminations, along with the planned spin-off of a number of services operations that are not directly related to Commerce One products. The reductions will primarily focus on the company's professional services, marketing, sales and administrative staff.

Commerce One plans to complete the reductions during the fourth quarter of 2001. The company employed 2,800 people at the end of the third quarter, which ended September 2001.

"We are maintaining our focus on delivering the products and services our customers need to be successful," said Mark Hoffman, Commerce One chairman and CEO. "By aggressively investing in our collaborative commerce product line, we feel that we are well positioned to compete in the current economic climate and, more importantly, during a recovery."