Corel details layoffs and restructuring
- — 07 September, 2000 13:31
Corel has been working to put its cost in line with its revenues. The cost-saving measures to the company's annual budget include $US18 million in salaries, benefits and third-party contract expenditures, $US12 million in advertising, marketing and market development costs, and $US5 million in general and administrative costs, the company said in a statement Wednesday. The move will allow the company to move forward, and Corel will make some announcements at the end of the month about the progress made, said Derek Burney, interim chief executive officer, in a statement.
Some of the affected employees in Ireland will have the opportunity to move to Canada and work at the corporate headquarters in Ottawa, Corel said. A team of professional services, manufacturing and distribution will remain in Dublin to support Corel's international customers.
The news of its consolidation in Ireland comes about three weeks after Michael Cowpland resigned as the company's chief executive officer and chairman of Corel's board. His departure was expected, according to analysts, who have watched Corel battle through rough financial times.
Corel's merger with US development tools vendor Inprise/Borland failed in mid-May. The company has also experienced financial losses recently. During the second quarter that ended May 31, 2000, Corel reported a net loss of $US23.6 million on revenue of $US36.6 million, the vendor said in a statement. The company had $US9.9 million in cash at hand as the quarter closed. For the same period in fiscal 1999, Corel recorded a net profit of $US9.2 million on revenue of $US70.5 million. Corel has said its third quarter figures should be similar to those released in the second quarter.