The Santa Cruz Operation (Nasdaq: SCOC) has slashed 19 percent of its workforce as the company prepares to turn over a pair of divisions to Caldera Systems (Nasdaq: CALD).
After market close Thursday, SCO said it will report a one-time charge ranging between $5 million and $6 million for the fiscal fourth quarter ending Sept. 30, to pay for 190 job cuts. The moves come ahead of the planned sale of SCO's services and server software units to Caldera.
"This reduction will lower expenses to better reflect SCO's recent performance in our server software and professional services divisions," said Doug Michels, CEO of SCO. "Moreover, we have worked closely with Caldera to ensure that these actions produce staffing results consistent with its future, post-acquisition business model."
SCO following the sale will consist solely of its Tarantella division, whose technology provides Internet capability for applications. The slimmed down company will adopt the Tarantella name.
Shares of SCO rose 1/4 to 4 7/32 in Thursday's regular trading, prior to the announcement of job cuts.>