Friday, September 12, 2008

Corel to trim 90 jobs worldwide

Corel Corp. will shed 90 jobs worldwide, or about eight per cent of its workforce, the Ottawa-based software maker said late Wednesday.

Interim CEO Kris Hagerman said in a statement that the job cuts were part of an "adjustment" that would enable the company to operate "as efficiently as possible."

The statement said the company wants to focus on "emerging markets and eCommerce."

Corel said it will book a one-time restructuring charge of $2.8 million US in relation to the job cuts, but it maintained its operating profit guidance for the current quarter.

Corel's largest employee base is in Ottawa, where 20 staff have been let go.

In its announcement, the company repeated earlier statements that it is looking for potential buyers to take it private. Corel's 69 per cent owner, Vector Capital, initially put in an $11-a-share bid for that purpose in March, but it withdrew its offer in August.

Founded by colourful entrepreneur Michael Cowpland, Corel first went public in 1989. Then, after it crashed and burned in the tech-bubble burst of 2001, it was bought out and taken private by Vector in 2003, only to go public again in 2006.

Corel's products include the programs Paint Shop Pro, WinDVD, WordPerfect Office and CorelDRAW.

Its lightly traded shares closed at $9.90 US Wednesday on Nasdaq.

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