'Business as usual' claims Lotus chief

Lotus chief executive Al Zollar claimed it is "business as usual" at the IBM software subsidiary, despite reports and a leaked internal memo indicating that the software arm is aligning closer with its parent.

Lotus chief executive Al Zollar claimed it is "business as usual" at the IBM software subsidiary, despite reports and a leaked internal memo indicating that the software arm is aligning closer with its parent.

Speaking at the Lotusphere user conference in Orlando last week, Zollar dismissed restructuring talk as "rumour". But after further reports surfaced and an internal memo sent by the Lotus chief to staff was leaked, Zollar attempted to put a positive spin on ongoing restructure plans.

Flanked by Steve Mills, head of IBM's software division, Zollar said he had nothing more to divulge, adding: "It is an internal matter, but it is business as usual."

However, he did confirm that Lotus was looking at how to better execute its strategy and what "impact" it would have on "key constituencies" such as Lotus business partners. "We are working in tandem with the software group [IBM]," Zollar said.

He added that there will still be employees selling Lotus products, systems and support. Whether these employees will be part of an IBM subsidiary or part of IBM's software division, Zollar did not say.

Mills claimed that IBM and Lotus' strategy was "common practice" for merged companies. He bluntly told reporters at the conference to "get used to it".

But Zollar's leaked memo said that to increase Lotus' profitability, the firm had to focus on creating a 'new' Lotus forged by tighter integration with IBM.

According to a source familiar with the company, it is planning a mini restructure that is likely to take place in the next few weeks. This will include the axing of up to 40 per cent of its marketing staff.

Zollar would not comment on whether there would be redundancies. He said if this was the case Lotus would "tell employees first".

Ian White, vice president at IT Factory, said there was an "obvious degree of uncertainty" regarding the future among Lotus employees.