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Acclaim President Resigns, Company Announces Imminent Layoffs
Acclaim announced that Edmond Sanctis, the President and COO of Acclaim North America, has resigned in the wake of the company's finanicial problems.
Sanctis had served as President and Chief Operating Officer since December 28, 2001, and the company said that Rod Cousens, the President and COO of Acclaim's International division, will assuming the role of interim Global Chief Operating Officer and President. Additionally, Acclaim has announced a new operating plan to help get the company back on solid financial footing. The plan focuses on four areas:
Reducing operating expenses
Achieving and maintaining positive cash flow
Review its product release schedule and revise it to better meet market demand
Meet the company's projected profitability.
To help curb operating expenses, which it wants to slice by 35% annually, Acclaim plans to set its research and development expenditures (product development) at 21% of the company's annual net revenue. To hit that mark will require layoffs "throughout all levels of management in its global organization," the company said. That will amount to a 35% decrease in its administrative headcount.