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Novell Plans To Cut 20% Of Workforce

Novell is expected to layoff as much as 20 percent of its workforce as part of a massive cost cutting measure to placate Wall Street.

Sources familiar with the company's plans said roughly half of the cuts -- 10 percent -- will come from Novell's operations in Provo, Utah and Waltham, Mass. The other 10 percent will impact Novell's European division, including SUSE Linux operations in Nuremberg, Germany. Novell's North American sales force will not be affected.

"The cuts will be deep across the board, as much as 20 percent," said one source close to the company who preferred to remain anonymous. "SUSE is being decimated, and layoffs will include SUSE developers."

As the company's fiscal year end approaches on Oct. 31, employees and observers await an official announcement. Sources expect more than 1,000 of the company's 5,800 employees will be fired. Novell would not confirm that information.

A Novell spokesman acknowledged that the company promised to make significant cost cuts but would not comment on possible layoffs.

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