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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., responding to an increasingly competitive software market, on Wednesday laid off 15 percent of its workforce and said it would take a restructuring charge.

The company estimated the charge for its fiscal third quarter ended Dec. 31 would amount to $35 million.

″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, based in Scotts Valley, Calif., 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.″

Borland on Wednesday laid off 350 of its 2,200 worldwide workers, two- thirds of the cuts in the United States, Hawker said.

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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