Novell cost-cutting announcement comes this week

Novell Inc. employees waiting for word about layoffs will hear one way or another in a few days, said a company spokeswoman Tuesday.

The Provo, Utah-based software company has committed to reducing operating costs in the 2001 fiscal year, said Shannon Shupe, a Novell spokeswoman. Battling diminished profitability from fierce competition with Microsoft Corp., IBM Corp., and other software companies, analysts have predicted layoffs of up to 25 per cent of the 5,500 employee work force.

She said to expect an announcement “some time in the next few days,” but declined to confirm or deny the possibility of layoffs.

Technology analysts expect layoffs will be part of the announcement.

“Some type of layoff seems appropriate. They haven’t met analysts’ (financial) expectations for two quarters in a row,” said Neil MacDonald, vice-president and research director for the technology market research company Gartner Group Inc., in Stamford, Conn.

MacDonald said he didn’t believe personnel cuts would be good for Novell in the long term. “You can’t grow by cutting. It would look like Novell as a company isn’t confident that they know where they are going to grow,” he said, adding, “It has a serious effect on morale, and like any high-tech company they need to worry about attracting good personnel.”

Novell, in Provo, Utah, can be reached at http://www.novell.com/.

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.


Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

Empowering the hybrid workforce: how technology can build a better employee experience

Across the country, employees from organizations of all sizes expect flexibility...

What’s behind the best customer experience: How to make it real for your business

The best customer experience – the kind that builds businesses and...

Overcoming the obstacles to optimized operations

Network-driven optimization is a top priority for many Canadian business leaders...

Thriving amid Canada’s tech talent shortage

With today’s tight labour market, rising customer demands, fast-evolving cyber threats...

Staying protected and compliant in an evolving IT landscape

Canadian businesses have changed remarkably and quickly over the last few...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now