Linux and Unix software firm Caldera International has announced that it will miss second-quarter revenue estimates and cut 15 per cent of its workforce as it experiences what it calls a longer than expected IT spending slump.
Revenues for Caldera's second quarter are set to be between $15.1m and $15.5m, according to the company's revised estimates, which is $3m shy of the top end of its initial projections.
The company also said that it would cut some 73 jobs across various regions and divisions, leaving a total of about 400 workers.
Some cuts had been expected after chairman and chief executive Ransom Love told vnunet.com in April that changes to the company's services business would mean a reduction in employees, but the latest losses were also due to the company's financial performance.
Caldera will close its office in Erlangen, Germany, where much of its Linux development took place.
The German market is one of the toughest for the company given the dominance of the Linux offering from SuSE, but Caldera said it would continue its German operations in Munich and Frankfurt.
It will also close its office in Chelmsford, Massachusetts, which it acquired following the purchase of Acrylis. The closures are expected to save the company $7m annually.
Along with the staff cuts, chief technology officer Drew Spencer and chief legal counsel Harrison Colter have resigned from the company.
They will remain as part-time consultants, and Caldera said that it would not be naming a new full-time chief technology officer.
The company will report its second-quarter earnings on 29 May.
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