In a cost-cutting measure that is designed to save approximately US$25 million per quarter, Novell Inc. of Provo, UT has cut its workforce by 16 per cent.This move will see the termination of 900 posi...
November 1, 2000
In a cost-cutting measure that is designed to save approximately US$25 million per quarter, Novell Inc. of Provo, UT has cut its workforce by 16 per cent.
This move will see the termination of 900 positions, which will leave the company with a worldwide workforce of about 4,600 people. The company says it is also writing off certain other assets, and anticipates taking a pre-tax restructuring charge of between $40 and $50 million in its fourth quarter.
In a news release issued by the company, Novell said it expects to reduce its overall quarterly cost of doing business by approximately $25 million, beginning in the first fiscal quarter of 2001. The company said the restructuring is part of management plans to focus the organization on the Net services market and improve the company’s business performance.
“We’re reducing expenses overall, and we are also freeing up dollars to spend on key sales, marketing and development initiatives that are part of our strategic focus,” said Novell Chairman and CEO Dr. Eric Schmidt. “These actions are intended to improve the business in 2001, as we build the value of the Novell brand and accelerate deployment of Novell Net services that support how business is done on the Net.”
After the alignment of its expenses, Novell said it will continue to spend a high percentage of total revenue on product development, sales and marketing.