SCO has shed 10% of its workforce in order to focus on businesses it believes will help it compete more effectively against Microsoft.
The reorganisation, which will result in the loss of 120 staff worldwide, brings together SCO's development efforts into a single product engineering and marketing group headed by chief technical officer, Doug Michels. Research and development expenditure will also be cut in order to bring operational costs in line with company revenues.
According to Malcolm Etchells, marketing manager at SCO, costs will be further reduced when the company completes the merger of its UnixWare and Open Server 5 product families under project Gemini in the fourth quarter of 1997.
SCO will now focus its efforts on three core businesses: Internet, enterprise computing and client-server middleware.
"Over the last year we have invested heavily in the enterprise, Internet and our Tarantella middleware product. This investment is now coming to fruition," said Etchells. "We must maximise our gains in the products we have developed."
The company said it will take a one-off, non-recurring charge of $8 million (#5 million) in the third fiscal quarter of 1997 to cover the restructuring.
SCO is also moving towards electronic distribution of software, which will require less inventory in the distribution channel.
One of the first products to be affected by the change will be the Vision family of terminal emulation, networking and X Server software. This will now be distributed on a single CD. Users will obtain the CD and a license from SCO resellers, who will provide them with a key to unlock the software.
"This will simplify both distribution and installation," said Etchells.
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