| Novell layoffs rumored |
Nov. 06, 2006
According to sources close to Novell Inc., the Linux company has laid off numerous mid-level employees from several departments, including training and sales.
While Bruce Lowry, director of global public relations for Novell said, "We don't comment on rumors," one former employee said that he had been let go on November 1st. This was the day before Novell announced its controversial alliance with Microsoft over Linux and patent IP (intellectual property) rights.
According to the ex-Novell staffer, "They let go of twenty or so employees in other departments yesterday. I don't know what has happened today since I'm officially now out of the loop. I've heard that there were other cuts in several departments though."
In addition, he said, "There was to be a big sales reorganization this week, and you know what this usually means..."
In recent months, Novell has been stuck in a financial doldrum. Although the company's Linux business has been improving, it has not improved enough to make up for declines in its NetWare-related products and in its systems, security, and identity management businesses.
The company has also been under pressure from investors -- such as Credit Suisse First Boston and Blum Capital Partners LP -- to implement changes that will improve its profitability sooner, rather than later.
It was due, in part, to these demands that long-time CEO Jack L. Messman and then CFO Joseph S. Tibbetts, Jr. were fired. In Messman's place, the Novell board appointed Ronald W. Hovsepian, who had been president and COO since October 2005.
Hovsepian, by that time, was already working on the Microsoft alliance.
In addition, since this summer, Novell, like many other technology companies, has run into trouble with NASDAQ because its self-investigation of its past stock option practices caused it to delay issuing its July 31st quarterly earnings report. This failure to report also caused Wells Fargo Bank N.A. to claim that Novell had defaulted on its payments against $600 million worth of 0.50% Convertible Senior Debentures that were due in 2024.
Rather than try to fight this claim out with Wells Fargo, with all the expense and uncertainties that would accompany such a battle, Novell has been trying to solicit consent to Novell having until Friday, March 30, 2007, to become current in its SEC reporting obligations. It is not known at this time, whether Novell's creditors have given the company this extension.
-- Steven J. Vaughan-Nichols
Get the whole Novell/Microsoft picture here:
The Novell/Microsoft Linux Deal Reading List
Do you have comments on this story?
Talkback here
NOTE: Please post your comments regarding our articles using the above link. Be sure to use this article's title as the "Subject" in your posts. Before you create a new thread, please check to see if a discussion thread is already running on the article you plan to comment on. Thanks!
(Click here for further information)
|
|
|
7 Advantages of D2D Backup
For decades, tape has been the backup medium of choice. But, now, disk-to-disk (D2D) backup is gaining in favor. Learn why you should make the move in this whitepaper.
4 Legal Reasons to Control Internet Access
The Internet is obviously a valuable resource for many organizations. However, many are exposed to legal liability concerns because they fail to control Internet access. Learn if you're safe in this white paper.
Rapidly Resolve J2EE Application Problems
Whether you are in the process of building J2EE applications or have J2EE applications already running in production, you must ensure that they deliver the expected ROI. Learn how in this white paper.
Load Testing 2.0 for Web 2.0
There are many unknowns in stress testing Web 2.0 applications. Find out how to test the performance of Web 2.0 in this white paper.
Build Better Games Online
For the game infrastructure providers, life is complex. Making money from games has become more complicated. Why? Find out in this white paper.
Building a Virtual Infrastructure from Servers to Storage
This white paper discusses the virtual storage solutions that reduce cost, increase storage utilization, and address the challenges of backing up and restoring Server environments.
Gaining Faster Wireless Connections with WiMAX
Welcome to what is quickly becoming the hyperconnected world where anything that would benefit from being connected to the network will be connected. Learn more in this white paper.
Is Your Desktop a Security Threat?
The new wave of sophisticated crimeware not only targets specific companies, but also targets desktops and laptops as backdoor entryways into those business’ operations and resources. Learn how to stay safe in this white paper.
Increasing SAN Reliability by 100 Percent
Storage area networks (SAN) are a strong part of storage plans. Learn how to increase your reliability and uptime by 100 percent in this case study.
|
|
|
|
|
news feed