Novell New Zealand head Peter Revell says sales in New Zealand have stayed flat in the year to the end of October.
Even so, the company has laid off three staff – a quarter of the total – in line with a directive from headquarters in the US.
“It’s disappointing,” says Revell, who says remaining staff are confident about future business.
The layoffs affect 19% of the company’s total staff of between 6000 and 7000, says Revell. They come about as Novell culls workers after the merger with consulting company Cambridge Partners, which was formalised at the start of November.
“I can understand what the company is doing; it’s lowering its cost structure worldwide and every subsidiary was asked to make a contribution,” Revell says. “It’s not a reflection of where our business is tracking."