Corel Corp. cut 22 per cent of its global workforce on Wednesday, or 220 staff, as it acts to cut costs and return to profitability.
About 170 of the layoffs will come in Ottawa where the company employed more than 850 staff after cuts made earlier in the summer. A company memo earlier in the week warned the cuts were coming but details were not provided.
The cuts will leave Corel's global workforce at 769. The cuts are widespread across the organization and are expected to trim costs by $12 million a year (all figures in U.S. dollars) beginning in the first quarter of the next fiscal year.
Spokeswoman Ann Vis said the move relates back to the company's vow during its Q3 conference call in September to focus on reducing costs and returning to profitability.
When Corel released its Q3 results, then CFO John Blaine said there were no specific plans for additional layoffs. However, CEO Derek Burney added "we'll make the right decisions when the time comes.?
During the third quarter ended in August, Corel cut 46 staff, including 30 engineers.
A one-time restructuring charge of $5.8 million to $6.3 million will be incurred in the current fourth quarter from the cuts.
In recent months Corel has looked into the advantages of cutting costs by building new corporate headquarters. The company has received submissions from development companies and property managers but no definitive plans have been made and the company has been coy about its intentions.
Vis admitted Wednesday's cuts will leave the HQ on Carling Avenue with "some empty space" but would not say if a change of address is now any more likely.
In the third quarter the office and graphics software maker posted a net loss of $59.1 million, or 64 cents a share, compared with net income of $500,000, or a penny a share, in the same period a year ago. Excluding a goodwill charge related to acquisitions, the company posted a loss of $8.6 million, or nine cents a share.
Revenues totalled $31.3 million, compared to $34.2 million in last year's Q3.
For the current quarter revenues are forecast at $34 million to $38 million, compared to $31.6 million in the fourth quarter of last year.
In the past few months Corel has signed deals with almost every major PC maker that will see its software put on low-end machines in lieu of Microsoft's rival products.
The bundling deals, while raising the company's profile, are not expected by analysts to do much to drive sales and improve Corel's lagging stock price.
About 170 of the layoffs will come in Ottawa where the company employed more than 850 staff after cuts made earlier in the summer. A company memo earlier in the week warned the cuts were coming but details were not provided.
The cuts will leave Corel's global workforce at 769. The cuts are widespread across the organization and are expected to trim costs by $12 million a year (all figures in U.S. dollars) beginning in the first quarter of the next fiscal year.
Spokeswoman Ann Vis said the move relates back to the company's vow during its Q3 conference call in September to focus on reducing costs and returning to profitability.
When Corel released its Q3 results, then CFO John Blaine said there were no specific plans for additional layoffs. However, CEO Derek Burney added "we'll make the right decisions when the time comes.?
During the third quarter ended in August, Corel cut 46 staff, including 30 engineers.
A one-time restructuring charge of $5.8 million to $6.3 million will be incurred in the current fourth quarter from the cuts.
In recent months Corel has looked into the advantages of cutting costs by building new corporate headquarters. The company has received submissions from development companies and property managers but no definitive plans have been made and the company has been coy about its intentions.
Vis admitted Wednesday's cuts will leave the HQ on Carling Avenue with "some empty space" but would not say if a change of address is now any more likely.
In the third quarter the office and graphics software maker posted a net loss of $59.1 million, or 64 cents a share, compared with net income of $500,000, or a penny a share, in the same period a year ago. Excluding a goodwill charge related to acquisitions, the company posted a loss of $8.6 million, or nine cents a share.
Revenues totalled $31.3 million, compared to $34.2 million in last year's Q3.
For the current quarter revenues are forecast at $34 million to $38 million, compared to $31.6 million in the fourth quarter of last year.
In the past few months Corel has signed deals with almost every major PC maker that will see its software put on low-end machines in lieu of Microsoft's rival products.
The bundling deals, while raising the company's profile, are not expected by analysts to do much to drive sales and improve Corel's lagging stock price.
