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CNET News.com/Reuters: Corel workers jump ship ahead of layoffs, cost-cutting

May 27, 2000, 02:22 (0 Talkback[s])

"Employee morale is slumping, and several senior executives are jumping ship as struggling Canadian software developer Corel readies a dramatic cost-cutting plan that could include hundreds of layoffs."

"Ottawa-based Corel, which late yesterday announced a much-needed financing deal worth C$15 million to C$30 million ($10 to $20 million U.S.), is now expected to slash expenses in the wake of its failed merger with Inprise/Borland."

"Analysts are now waiting for details on how Corel will cut costs by $40 million annually--savings widely expected from dramatic layoffs among the company's 1,391 full-time staff. Including part-time and student staff, the company has a total of about 1,500 employees."

"The company would not comment on a media report that 400 jobs could be cut, but that figure may be conservative, said Jean W. Orr, an analyst at Bluestone Capital Partners, who follows Corel. The company may need to trim about 500 jobs, which at an average salary of $60,000, translates to $30 million annually. Corel could also cut about $10 million from advertising to meet its $40 million target, Orr said."

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