VNU Net: Corel Wields Axe on Dublin OfficeSep 06, 2000, 16:59 (0 Talkback[s])
(Other stories by Ian Lynch)
By Ian Lynch, VNU Net
Troubled software vendor Corel has axed 139 jobs from its Dublin office - moving all engineering operations back to its corporate HQ in Ottawa, Canada.
Corel has been in trouble since a proposed merger with Inprise/Borland, which had $240m in cash reserves, was terminated in May this year when shareholders in that company balked at the terms of the deal.
Corel had previously warned that it could run out of money inside 90 days if the merger did not go ahead. Once the merger fell through, it said it would reduce costs by $40m a year to ensure it remained in business. The company's share price has fallen from $44 to less than $4 in the past year.
In June, Corel chief financial officer John Blaine said 320 jobs would be shed from the company's corporate HQ. Today's announcement means Corel has lost more than a third of its workforce since May, including founder and former chief executive Michael Cowpland who quit last month.
Corel said in a statement that a core team of professional, manufacturing and distribution services would remain at its Dublin base and that a limited number of staff would be offered the opportunity to relocate to Canada.
Derek Burnley, Cowpland's replacement, said: "This is a necessary step to streamline our costs and development efforts. With our cost-restructuring plan well in hand, we have one of the key areas which will enable us to move the company forward."
The $40m cost reductions include $18m in salaries, $12m in advertising, marketing and R&D, $5m in sales, and another $5m in administration and miscellaneous costs.