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Borland Lays Off 15 Percent Of Workforce, To Take 3rd-Quarter Charge

December 10, 1992

SCOTTS VALLEY, Calif. (AP) _ Borland International Inc. is laying off 15 percent of its employees and taking a $35 million restructuring charge this quarter in response to an increasingly competitive software market.

Borland on Wednesday laid off 350 of its 2,200 worldwide workers, 150 of the cuts at its Scotts Valley headquarters, company officials said. The charges were for its third quarter ending Dec. 31.

″This organization is designed to make Borland leaner, more competitive and profitable,″ said Philippe Kahn, the company’s chairman, president and chief executive officer.

Borland has been the dominant maker of database software, programs that let personal computer users organize large amounts of data.

But it faces strong competition from industry giant Microsoft Corp., which recently announced it would market its first major database software program for PCs at a steeply discounted introductory price through January.

″The software industry is going through a fundamental pricing restructuring change similar to the one in hardware,″ said Borland spokeswoman Sandra Hawker. ″We recognize this is a major trend in the industry and we have to be poised for it.″

The company said it was consolidating its research and development, product management and marketing operations to allow Borland to focus on integrating its expanding product line.

Hawker said the company had no estimate of earnings for the quarter beyond the $35 million restructuring charge. In last year’s third quarter ended Dec. 31, Borland’s profits rose 10 percent to $7.5 million on revenues of $114.6 million.

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