Novell axes European staff
Pay now, save later
In Brief Novell has discovered a hundred or so workers it can do without in Europe, as the software maker tries to save money.
Novell today revealed that it has the all clear to fire between 120 to 150 employees throughout its EMEA operations. It will take a charge between $10m and $12m for the move. "These costs, which consist primarily of employee severance arrangements, will be principally paid out, and the restructuring plan will be substantially completed, in the fourth quarter of fiscal 2005," Novell said in a regulatory filing.
Novell expects to save between $3m and $4m per quarter.
Novell reported second quarter results in May, showing a rise in revenue to $297m from $294m one year earlier. It's net loss hit $16m - increasing from $15m. It will report third quarter results on Aug. 25.
Novell has failed to turn its high-profile buys of SuSE and Ximian into serious cash machines much to the dismay of Red Hat's competitors. ®