Corel, AMD to cut workforce

Canadian software maker Corel has slashed 22% of its workforce, or 220 jobs, in an effort to reduce costs and return to profitability, the company says.

          Canadian software maker Corel has slashed 22% of its workforce, or 220 jobs, in an effort to reduce costs and return to profitability, the company says.

          The job cuts affect all departments within the organisation and are aimed at producing a payroll cost reduction of around $US12 million a year on an ongoing basis, Corel says.

          "While we anticipate revenue growth for fiscal 2003, we are adopting a conservative approach in aligning our cost structure to reflect the company's current revenue patterns," Corel president and CEO Derek Burney says.

          The Ottawa company's workforce now stands at 769 employees worldwide.

          To implement the changes, Corel is taking a one-time restructuring charge of between $US5.8 million and $US6.3 million during the current quarter.

          Meanwhile, AMD will announce workforce reductions during its quarterly analyst call this week.

          "We want to lower our break-even point," says Morris Denton, an AMD spokesman based at the company's headquarters in Sunnyvale, California.

          "There's really only a few ways to do that, one way is through lowering operating expenses. Some of those lowered operating expenses will include workforce reductions," he says.

          A report in the San Jose Mercury News said the company is expected by industry analysts to lay off 10% to 15% of its current workforce of 13,000 employees. Denton would not comment on that number.

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