January 17 (SeeNews) - Progress Software, the parent company of Bulgarian software developer Telerik by Progress, said it plans to reduce its workforce by 450, corresponding to 20% of the company's total number of employees.
"Initial headcount reductions will begin in the fiscal first quarter of 2017 and should be substantially completed by the end of the fiscal second quarter of 2017, subject to local laws and consultation processes," the company said in its end-2016 results report.
Progress Software plans to undertake a new product strategy that will leverage its application development platform capabilities, and enable its customers and partners to build next generation applications that drive their businesses.
Progress also said it recorded a non-cash impairment charge of $92 million (85.9 million euro), as a result of reduced future growth expectations within its Application Development & Deployment segment related to its Bulgarian business.
In 2014, Progress Software acquired Bulgarian IT firm Telerik for $262.5 million in what was the biggest mergers and acquisitions deal in the country that year.
Telerik had about 800 employees prior to the transaction.
Progress Software services include software application development, empowering enterprises to build mission-critical business applications.
($=0.9340 euro)