Borland lays off 300
More Borland International employees are paying the cost of the company's efforts to regain profitability.
The software development tool maker today cut 300 jobs, or 30 percent of its workforce, as part of a global restructuring program announced by Borland chairman Delbert Yocam.
The cuts will be completed by April 1 and will be spread across the company's divisions. After the layoffs, Borland will employ roughly 700 people.
In its heyday, Borland employed roughly 4,000 people and its stock traded as high as $82 per share. The company has been on a downward spiral ever since an ill-fated acquisition of database software maker Ashton-Tate in 1991, losing money in five of the last six years.
In its latest quarter, Borland reported worse-than-expected results, posting a net loss of $29.4 million, or 81 cents per share, and a revenue drop of 33 percent to $36.8 million.
As part of ongoing efforts to push back towards profitability, the company has been shedding workers and selling off products outside of its core developer business. The company announced its last round of layoffs in October when 125 people lost their jobs.
The layoffs are only part of the cost-slashing program. Borland will also relocate technical personnel from its Boston-based Open Environment division to its Scotts Valley, California, headquarters, according to company officials.
The restructuring should overall save $30 million in annual operating costs, according to Yocam's calculations. Borland will take a one-time $24 million to $30 million restructuring charge this quarter.
Wall Street welcomed the announcement. Borland's stock closed at $7, up 7/8, or nearly 15 percent.