“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.”