Novell slashes EMEA workforce

Vendor claims UK channel operation unaffected by the cuts

Novell will cut its EMEA workforce by up to 150 employees by the end of the year to improve the region's profitability, as exclusively revealed by CRN in June.

It is unclear at this stage which divisions of Novell will endure the cuts. But a source close to Novell said the UK channel operation had seen cutbacks.

"I know of between eight and 12 people that have gone from its European operations, including at least two partner managers from the UK channel and at its Bracknell office," the source said.

However, Chris Papyianni, director of UK operations at Novell, denied that the UK channel would be affected. "There are no changes to UK channel executive positions, but there will be some to the EMEA channel, such as consolidation of senior positions. This will include consolidation of partner management and alliances roles," he said.

In a filing to the US Securities and Exchange Commission last week Novell said the restructuring will cost it up to £12m, mostly during its third quarter, and partly comprised of employee severance payments.

In June CRN reported that Novell was looking to make extensive cut-backs from its European offices following the resignation of its president Richard Seibt and a second quarter loss of $16m (CRN 20 June).

Mike Lawerence, managing director of VAR Bentpenny, said the EMEA layoffs may only be the beginning of the restructure.

"Rumours have been flooding around for months. There is likely to be some disturbances as a result of this announcement," he said.