Novell's second quarter losses will result in the loss of 5,200 jobs globally, but the impact on 130 Australian and New Zealand staff is, at this stage, unclear.
The provider of Internet services software has reported a second-quarter net loss of US$151 million or 48 cents per share on revenues of US$241 million, blaming results on the fallout from the Internet sector as well as the continued decline in enterprise IT spending.
These results compared unfavourably with revenues of US$302 million and earnings of US$31 million the previous year.
Staff cuts, as well as restrictions on travel spending, advertising and recruiting is Novell's attempt to return to profitability by the end of the year, the company said.
Novell Australasia Managing Director, Ashley Wearne, would not comment on local job cuts but said revenue in Australia was up 14 percent while New Zealand revenue increased by 29 percent in local currency compared to same period in 2000.
"Evidence for the success of this strategy is the growth in consulting services for the last six months and the continuing growth in licensing sales," he said.
"An added benefit to our approach is that it has established an excellent platform for closer relationships with Cambridge Technology Partners as the merger progresses."
