SkillSoft to cut up to 120 jobs in Dublin

Up to 120 highly skilled technology jobs are to go at the Dublin headquarters of US e-learning company SkillSoft.

Employees working for the company are expected to be informed by management later today about the results of a review of its global operations.

SkillSoft's review will recommend outsourcing the editorial division that develops e-learning courseware content. It is likely the firm will retain its software development centre in Dublin, sources said yesterday.

The Irish Times has seen an internal email sent to staff yesterday asking those employees eligible for voluntary redundancy to apply no later than 5 pm on Tuesday, December 7th.

Several SkillSoft departments mentioned in the employee email that will be affected by the redundancy plan include: content R&D; localisation; curriculum development; content development; and learning design.

About 120 people work in SkillSoft's e-learning content division while a further 60 people work in its software development unit.

SkillSoft, which bases its corporate US headquarters in New Hampshire, acquired the Irish firm SmartForce in 2002 to become one of the biggest e-learning firms in the world.

The company also bases its world headquarters in Dublin at offices in the Belfield Office Park in Clonskeagh. About 180 employees work at this site in a variety of functions, including creating e-learning content to help train staff at companies and developing software platforms to help deliver this content online.

Last night the company published its third-quarter financial results and confirmed it would restructure its content development operations in Dublin and New Hampshire to cut costs.

"The primary factors leading to this restructuring are the company's ability to more cost effectively utilise outsourcing partners to develop course content and the completion of certain research and development initiatives undertaken after the merger with SmartForce and the excess space that now exists following the departure of contractors used to complete that work," said Mr Chuck Moran, SkillSoft president and chief executive. "As we have stated in the past, we review the various cost structures of the business on an ongoing basis and try to take advantage of opportunities that exist. This initiative is a by-product of that process."

For the three months ended October 31st, SkillSoft had net income of $4.1 million (€3.1 million). Its year-earlier net loss was $21.9 million, or 22 cents, including the impact of a $16 million payment to settle a class action lawsuit, and other expenses. This related primarily to the settlement of its 1998 class action shareholder lawsuit due to the restatement of the historical SmartForce financial statements.