has sliced its workforce in an effort to streamline operations and increase efficiencies. The company has cut its global workforce by 220 employees or approximately 22 per cent. Corel now has 769 employees worldwide.
These changes affect all departments within the organization and will result in a payroll cost reduction of approximately US$12 million per year on an ongoing basis, the company said in a statement. To implement these workforce changes, the company will incur a one-time restructuring charge of between $5.8 and $6.3 million. These expenses will be incurred during the current quarter, enabling the company to realize the cost savings beginning in the first quarter of fiscal 2003, said Derek Burney, president and CEO of Corel.
“Today’s actions are necessary for us to realize the company’s ongoing strategy to build long-term value for our shareholders and continually improve the experiences of our customers,” Burney said. “While we anticipate revenue growth for fiscal 2003, we are adopting a conservative approach in aligning our cost structure to reflect the company’s current revenue patterns. A decision of this kind is never easy. We value all of our employees and their contributions to Corel’s success.”