Software supplier Novell is refusing to discuss rumours that 20% of its workforce could be laid off in a restructuring at the end of this month.
Speculation has been growing that the company could axe up to 1,160 of its 5,800 staff. Novell, which is refocusing its products on Linux, on is struggling against a background of poor financial results. Revenues for the third quarter announced at the end of July, were $290.2m (£163.1m), down from $304.6m the previous year.
In a message posted on a company weblog, Novell spokesperson Bruce Lowry refused to confirm press rumours, but did confirm that “cost reduction and efficiency moves” were in the offing. The company’s year end results are due to be announced on 31 October.
“Novell has not made any statement regarding restructuring. The information and allegations in these articles are not based on official comment from Novell,” Lowry said.
He added, “As [chief executive] Jack Messman acknowledged in our Q3 earnings call, we will be making some cost reduction and efficiency moves. When the details of those moves are finalised, we will announce them. Until then, we will not be commenting on what is out there in the media.”