Unix software vendor The Santa Cruz Operation (SCO)says it plans to reduce its worldwide workforce by 19 percent, or around 190 employees. The job cuts will result in the company taking a charge of $US5 million to $US6 million in the quarter ending September 30.
SCO says the actions are designed to help it meet staffing goals set for its planned merger with Linux vendor Caldera, as well as to improve its ongoing profitability
"In order to be successful, we have to make some tough decisions," Doug Michels, SCO's chief executive officer, says in a company statement. "This reduction will lower expenses to better reflect SCO's recent performance in our server software and professional services divisions."
Following shareholder and regulatory approval of the merger, SCO says it will change its name to Tarantella -- formerly the name of one of three main SCO divisions. The Tarantella division offers application broker software.
Caldera would acquire SCO's remaining two divisions, which provide server software and professional services.
Tha staff cuts announced today are intended to "properly size" the two divisions that Caldera plans to buy to suit its post-merger business model. Any necessary cutbacks to the Tarantella division have already been made, SCO says.