It is believed up to a fifth of Novell’s staff could be made redundant in a desperate attempt to improve the company’s financial performance.
The company’s fiscal year-end next is 31 October and a lay-offs announcement is seen as imminent.
Up to half the cuts could come at Novell’s Provo, Utah headquarters, with the rest being earmarked for Novell’s European operations, including the company’s SUSE Linux operation in Germany.
Despite Novell slowly coming to rely on Linux-based software to generate new sales to replace its ageing Netware operating system, the cuts are expected to include some Suse developers.
Other big cuts are expected in Novell's modestly performing consulting division. It is believed a total of over 1,000 staff could be slashed from the Novell’s total headcount of around 5,800.
So far, Novell has only confirmed that it is seeking to make big cost cuts. For the third quarter to 31 July, Novell reported a 5% cut in sales and profits down 90%. It was this bad performance that prompted Wall Street and major investors to call for big cuts.