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Novell axes 1400 jobs

Novell is to shed 19% of its workforce as part of its restructuring plans to return the company to profit. The culling of 1400 workers has also been driven by a merger with consultancy firm, Cambridge Technology Partners.

Novell is to shed 19% of its workforce as part of its restructuring plans to return the company to profit. The culling of 1400 workers has also been driven by the Novell’s merger with consultancy firm, Cambridge Technology Partners.

Novell said the redundancies had been forced by a glut of IT consulting services capabilities and economic conditions.

Novell is anticipating its restructuring plans will be completed in the second fiscal quarter of 2002, leaving the company with a ‘leaner, meaner’ workforce of 6000, and a focus on services rather than products.

"Novell is becoming a more aggressive company, adopting solution delivery and support capabilities across every aspect of our business," said Novell Chairman and Chief Executive Officer Jack Messman. "The actions we are announcing today mean a better structured company, with improved profitability, that's well equipped to make real progress toward our growth objectives."

"Now is the time to make these changes as we enter our new fiscal year. Novell's Net services product strategy and our one Net vision to support eBusiness solutions are both solid, and aimed directly at what customers want: solutions to their business problems featuring best-of-breed IT products, like Novell's Net services software. Novell has tremendous market opportunity," Messman added.

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