Novell lays off 250 workers in United States

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Fri Oct 26, 2007 4:19pm EDT

BOSTON Oct 26 (Reuters) - Business software maker Novell Inc NOVL.O laid off 250 workers in the United States as part of an ongoing restructuring program to slash costs, company spokesman Bruce Lowry said on Friday.

Many of the jobs will be moved to Bangalore, India, where labor costs are lower than in the United States, he said.

"While it's not a one-to-one match of jobs lost in the U.S. to jobs gained in Bangalore, the most significant impact was on product development," Lowry said. "The most important piece of that was, in fact, hiring engineers in India and reducing engineers in the U.S."

The company has previously told investors that it will take $35 million to $45 million in restructuring charges this year. Costs associated with these layoffs are included as part of that $35 million to $45 million, Lowry said.

((Reporting by Jim Finkle, editing by Braden Reddall; jim.finkle@reuters.com, Reuters messaging: jim.finkle.reuters.com@reuters.net, + 1 617 367 4164)) Keywords: NOVELL LAYOFFS/

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