Novell cuts staff in channel revamp

Around 900 of Novell's 5500 staff are to lose their jobs as the company attempts to improve performance and revamp its channel strategy.

Around 900 of Novell's 5500 staff are to lose their jobs as the company attempts to improve performance and revamp its channel strategy.

The company said the losses, which amount to 16 per cent of its workforce, will be "across the board". Novell is also writing off other assets, which it estimated will result in pre-tax restructuring charges of $40m - $50m in the fourth fiscal quarter of this year, ending 31 October.

Steve Brown, Novell UK's managing director, said: "In light of our third-quarter results the company needs to reduce costs and streamline its business. Our channel strategy will also be tightened and we will make further announcements next month."

Brown also dismissed rumours of a takeover by IBM. "The beauty of this company is its independence," he said.

The job cuts are expected to come largely at managerial level, with Novell expecting to recruit more employees in customer-facing roles, said Joanne Hughes, a Novell UK representative.

"We need to develop closer relationships with our partners so this is an obvious step. Services will also be an important area of development for us," she added.