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Novell to Concentrate on Linux and Identity

Roughly 600 jobs will be cut by Novell in order to re-focus on its core businesses, Linux and Identity. The restructuring is expected to drive company growth and save more than $110 million in yearly run-rate expenses, according to officials. The resulting restructuring charge will be between $30 million to $50 million in the fourth quarter.

While the announcement paints a picture in broad strokes about what the company is going to do, the announcement was short on details. Officials said more information would be forthcoming in its fourth-quarter earnings report. Joseph Tibbetts, Novell senior vice president and chief financial officer, said in a statement that the restructuring allows Novell to focus its marketing efforts, reduce product development expenses and consolidate its worldwide operations around the key growth opportunities of Linux and identity.

`This cost restructuring initiative is part of the comprehensive transformation of Novell`s business that the management team has been designing and implementing over the past year,` Jack Messman, Novell chairman and CEO, said in a statement. `While it is a difficult decision to eliminate positions in our talented and dedicated workforce, this move is necessary to ensure that our costs are more closely aligned with our business strategy.`