Business software maker Siebel Systems Inc. is slashing more than 1,100 jobs, including some at its Durham facility.

The company said the cuts were made to deal with the bad market for corporate technology spending, which caused a 61 percent decline in Siebel’s second-quarter profits.

The job cuts amount to 16 percent of Siebel’s 7,160-person work force.

The San Mateo, CA-based company employed around 60 in Durham before the announcement. An emplpoyee at the facility confirmed that cuts were made at the Durham office, but did not say how many. The Business Journal of Raleigh reported that as many as half the work force, or anywhere from 25 to 30 employees, were let go.

The layoffs were announced Wednesday as Siebel released earnings that fell well short of Wall Street expectations, and the company lowered its outlook for the rest of the year. In the quarter that ended June 30, Siebel earned $29.8 million, a 61 percent drop in profits from the comparable period last year. Revenue fell 28 percent, to $405.6 million from $560.2 million a year ago.

Executives said they hoped to return to growth in 2003. But they acknowledged in response to an analyst’s question that without a meaningful turnaround in tech spending, next year’s revenue could be around $1.5 billion or $1.6 billion. That would be well below current projections for 2003 sales of $2 billion.

Siebel entered the Triangle by acquiring OpenSite Technologies. The company also has North Carolina offices in Charlotte and Greensboro.

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