Kana Communications, a maker of CRM (customer relationship management) software, has laid off 220 employees in an effort to cut costs and streamline operations. The Redwood City, Calif.-based company said the job cuts accounted for roughly 20 percent of its total work force and affected positions across all departments. The move is part of a plan to reduce expenses by $30 million to $40 million annually. The plan includes reorganizing several business units and consolidating product development to focus on offering a single integrated software suite.
Kana's Web-based CRM software helps manage a company's sales, marketing and customer service activities. In recent months, the company has suffered in the changing market climate, with an executive management shuffle and sagging profits. Last week, the company named Art Rodriguez the interim chief financial officer to take over for former CFO Brian Allen, who left Kana last month for personal reasons.