November 07, 2002, 9:19 AM — Canadian software maker Corel Corp. has slashed 22 percent of its workforce, or 220 jobs, in an effort to reduce costs and return to profitability, the company said Wednesday.
The job cuts affect all departments within the organization and are aimed at producing a payroll cost reduction of around US$12 million a year on an ongoing basis, Corel said.
"While we anticipate revenue growth for fiscal 2003, we are adopting a conservative approach in aligning our cost structure to reflect the company's current revenue patterns," Corel President and Chief Operating Officer (CEO) Derek Burney said in a statement.
The Ottawa company's workforce now stands at 769 employees worldwide.
To implement the changes, Corel is taking a one-time restructuring charge of between $5.8 million and $6.3 million during the current quarter.
Shares of the company (CORL) sunk 4.76 percent to $1 in Wednesday afternoon trading.