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5/3/2006
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Borland To Cut Staff By 20%

Borland Software said Wednesday it plans to cut staff by more than 20% as part of CEO Tod Nielsen's reorganization strategy for the financially struggling company.

Borland Software said Wednesday it plans to cut its staff by more than 20 percent as part of CEO Tod Nielsen's reorganization strategy for the financially struggling company.

Plans call for the elimination of 300 positions, and most of the layoffs will come from a restructuring of Borland's international operations, the company said. From the 29 countries Borland serves, the software vendor will select major markets in which to focus its direct-sales resources, with the remaining markets served largely through channel partners.

Layoffs associated with the reorganization are expected be completed by the end of July, Borland said. International sales accounted for 57 percent of the Cupertino, Calif.-based company’s revenue last year.

Other structural changes at Borland include a move to combine its sales and professional services organizations into a new "field operations" unit and to embed its customer service group into its research and development unit. A new "business operations" team led by Senior Vice President Chris Barbin will focus on reworking internal processes and systems to better serve customers.

Borland still is working to sell off the integrated development environment (IDE) business that was once its flagship. The software maker put the IDE unit on the block in February, and it said this week that it hopes to have a buyer in the next few months.

Meanwhile, Borland has placed its former EMEA vice president, Nigel Brown, in charge of the Developer Tools Group formed around the IDE product lines. The group now has about 180 sales, marketing and product development employees attached to it.

Nielsen, who took over at Borland in November, is repositioning the company to focus on the application life-cycle management (ALM) software market. Borland paid roughly $105 million in cash last month to acquire application monitoring tools vendor Segue Software, which is slated to form a core part of Borland’s portfolio going forward.

Borland reported a loss of $29.8 million on revenue of $276.7 million in its 2005 fiscal year ended Dec. 31. The company plans to give more details on its reorganization next week, when it releases its first-quarter 2006 financial results.

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