Mission Critical Linux makes layoffs

Mission Critical Linux has laid off much of its marketing staff and says it's developing business partnerships that will take care of publicizing its high-end Linux software. But some think the moves herald an acquisition by Linux leader Red Hat.

About 17 Mission Critical Linux employees were laid off, less than 20 percent of the hundred or so total employees on staff, said Moiz Kohari, the company's co-founder and vice chairman, who handed the CEO title to Tumanic in June.

The July 31 job cuts brought the company's expenses into better balance with its revenue, Chief Executive Robert Tumanic said on Friday. He said they weren't an indication that Mission Critical Linux is being packaged for sale to a company that already has a marketing staff.

"We're not fattening the company up for sale," Tumanic said. "Given the way these partnerships are evolving for us, it lessens the amount of money we need to spend in marketing."

But sources say Red Hat, which passed a crucial threshold in June, reaching positive cash flow, is in discussions to acquire Mission Critical Linux. Red Hat spokeswoman Melissa London declined to comment on the matter. -- By Stephen Shankland, Special to ZDNet News