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Novell President: Layoffs, Cost-Control Measures Upcoming

Novell's new president said the company plans layoffs and will cut off "noncore" assets to control costs and improve operational efficiencies.

At the Open Source Business Conference (OSBC) East in Newton, Mass., on Wednesday, Novell President Ron Hovsepian wouldn’t comment on the number of layoffs but said the software vendor’s cost-cutting measures will be announced soon.

"We're going to get things in alignment. We're trying to be as sensitive as possible to employees, but the realities are we're making sure we're in line with our resources," Hovsepian told CRN after his keynote speech at the OSBC event. "We can't let them get out of balance."

Waltham, Mass.-based Novell currently employs 5,800, a company spokesman said. Sources familiar with Novell’s plans have indictated that the company may cut as much as 20 percent of its workforce.

Novell has been communicating with employees and plans to disclose more information after quarterly earnings are announced and at the company's first global sales summit in five years in Provo, Utah, Hovsepian said. Novell also plans to reassign resources as it cuts head count, work more closely with distribution partners and provide sales tools to help partners sell the value of migrating to Linux, he said.

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