The downturn in the IT market has taken its toll on Novell.
The Net services software maker announced today that it is cutting its workforce by approximately 1400 positions, or 19 percent. Novell also announced a pre-tax restructuring charge of approximately $55 million, most of it taken in the companys fiscal fourth quarter, which ended October 31.
The move comes as part of a planned restructuring after Novell acquired Cambridge Technology partners in June.
Novell also says it expects fourth fiscal quarter revenue of $306 million, with earnings per share expected at approximately $0.01 per share, before "non-recurring restructuring, integration and impaired investment charges." Novell said it will release its complete fourth quarter results on Nov. 29.
"In spite of a very difficult market environment, Novells fourth quarter was largely in line with the expectations we discussed during our third quarter conference call," said Novell Chairman and Chief Executive Officer Jack Messman in a prepared release.
Novell said that it expects by the second half of its 2002 fiscal year to realize a savings of approximately $200 million annually from todays actions.