Novell swings the axe in staff cull

Networking company Novell is to lay off five per cent of its workforce after reporting poor second quarter results.

Losses of $151.3m - or 48 cents a share - for the quarter ended 30 April mean 260 staff now face the axe. During the same period last year Novell posted earnings of $31m - or nine cents a share. The losses included $142m investment expenses in internet companies including a $100m investment in MarchFirst. Revenue for the quarter was $240.8m down from $302m a year ago, while operating expenses increased $4m to $197m.