Suse Linux refocuses on Europe

Suse Linux is slashing back its US operation to refocus on its domestic European market, where the open source operating system is less established than on the other side of the pond.

The German-based Linux distributor is laying off 30 US employees and leaving a skeleton staff of only 15 to try and improve its efficiency and reduce costs. The cuts are reportedly mainly affecting technical support personnel, but Suse said it remains fully committed to the US market and its US customers.

Mark Simmons, senior analyst at Bloor Research, said: "Shifting its focus to the European market is a good idea. There is not enough Linux here. It is well-established in the US."

"What Suse is doing is not that much different from what Red Hat had to do, laying off workers in December. It has to streamline as it is not making much money. VA Linux will probably have a stripping back at some stage," he added.

But a Suse spokeswoman said: "We can be more effective by streamlining our on-site presence in the US and integrating certain functions such as technical support into our operations in Europe."

The staff cuts would "come from different departments as part of restructuring of the whole US business," she explained, and would not affect Suse's ability to provide Linux support in the US.

"We have over 100 employees in Europe capable of providing technical support to US customers via email, fax or phone. We have over 500 employees in total. With regard to the size of the company, the loss is not that severe, although we are losing worthy important employees," the spokeswoman claimed.

"There will be no disadvantages to US customers. We remain fully committed to the US market and will be introducing a range of new products there over the next few weeks. Our consulting services were not implemented or developed that much in the US," she added.