Turbolinux, the operating system distributor with a foothold in the Asian market, has quashed rumours that it is on the verge of closure.
At the end of last week, Linux bulletin boards were awash with speculation that the Linux vendor was about to go under.
But a statement published by Linux Today reveals that the company is undergoing a "restructuring" of its US operations.
According to information released by Turbolinux president and chief executive Ly-thong Pham, the reorganisation will mean reductions in the workforce.
The sudden move was apparently brought about by the surprise withdrawal of an unnamed investor during the company's latest round of funding.
It is still unclear whether the restructuring will have any impact on the company's contribution to the United Linux project, of which it forms a quarter along with SuSE, Caldera and Conectiva.
But United Linux is unlikely to be set back, as SuSE is responsible for the development track of the project.
Pham said that more details on the company's current position would be made available next month.
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