RSA Restructures, Cuts Staff

Says channel support intact

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RSA Security said Wednesday it is restructuring the company and cutting 17 percent of its workforce.

The company, based here, is realigning around three new product divisions: Authentication, developer solutions/encryption and Web access management. It also is cutting program expenses and letting go approximately 200 employees, roughly 17 percent of its worldwide workforce.

RSA said it expects to take a charge of $8 million to $10 million this quarter, mostly in connection with the workforce reduction.

John Worrall, RSA vice president of product marketing, said staff is being cut throughout the organization but that the company's channel support structure will not be affected.

"The channel won't notice anything in terms of that," he said.

RSA said its sales, marketing and administrative functions will continue to operate as separate groups serving the entire company.

Worrall said the purpose of the restructuring is to ensure that the company is aligning its resources in areas that will give it the best results and get "expenses in line with revenue."

Earlier this month, RSA posted a first-quarter loss of $13.7 million. The vendor blamed weak IT spending for the shortfall.

"It's a challenging economic time for high-tech, and our sector is not immune from that," Worrall said.

With the realignment, RSA hopes to improve its sales channels, both direct and indirect, he said.

The company will increasingly rely on its channel partners for sales of the SecurID authentication system, but the ClearTrust Web authorization products require more of a direct touch, he said. RSA acquired the authorization product line when it bought Securant Technologies last year.

Bill McQuaide, senior vice president, will head the new authentication product division, which will include the SecurID and Keon lines. Scott Schnell, senior vice president, will lead worldwide sales, marketing and professional services.

"With this new structure, we are putting our focus on security for Internet applications, especially Web enablement, in line with the needs and future direction of our customers worldwide," said RSA President and CEO Art Coviello in a prepared statement.

"We believe that to position RSA Security for future success we must reinvent ourselves as a more aggressive, product-focused organization," he said.

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