BearingPoint To Cut Up To 550 JobsBearingPoint To Cut Up To 550 Jobs

IT and professional-services firm BearingPoint says it will cut about 450 to 550 staffers--about 3% of its total workforce--in response to "current market demand," according to a statement issued by the company.

BearingPoint, formerly KPMG Consulting, says most of the job cuts will come in the North American and Asia-Pacific regions. In December, the company said it plans to reduce the size of its operations in Germany.

The IT services industry is suffering through a malaise as many large companies, faced with uncertainty in their own business environments, are holding off on expensive consulting engagements.

Bear Stearns analyst Andrew Steinerman says most of the reductions at BearingPoint will come from senior management, which he describes as top heavy. "Getting rid of some fat is to be expected," Steinerman says. BearingPoint last year hired about 1,600 employees from Andersen Business Consulting.

To cover the cost of the layoffs, BearingPoint says it will likely take a charge against earnings of $17 million to $23 million in its fiscal third quarter ending in March.