Sign up for our newsletter - Navigating the horizon of business technology​
Technology / AI and automation

ARTISOFT CUTS STAFF AND RESTRUCTURES BUSINESS

Artisoft Inc should have seen the way the wind was blowing with its rival Novell Inc long ago, but only came out with a Windows NT version of its LANtastic network operating system this month. Now Artisoft has announced a major restructuring, axing around 130 of its 270 staff as it aims to cut costs and reduce its break-even point. The company also warned that sales for the fourth quarter will be substantially down on the third quarter, citing changes in its distribution system for a drop in sales. It that it expects to incur one-time charges due to the implementation of the restructuring program covering items like severance pay and office closures. Artisoft said job losses will affect all areas of the company and are due to be implemented by September 1, 1997. There are also plans to close a number of international sales offices, and the company’s Tucson corporate headquarters is to be sold and replaced by smaller leased premises. Despite losses in the previous two quarters (CI 3,167 and 3,085) the company looked to be turning the corner with figures comparing favorably with the relevant periods last year. Only last month it announced a raft of new products and plans to focus on NT-compatible products in a bid to return to profitability (CI 3178). European marketing communications director Herve Cadoret admitted the company had been a little bit late with NT products, and hadn’t been in synch with the market. It’s true we’re not performing so well in the US but in Europe it’s certainly better. Cadoret insisted that ongoing research and development would not be seriously affected. Artisoft has appointed T.Paul Thomas, as its new president and chief operating Officer; chairman William Keiper had been acting as interim president following the resignation of Joel Kocher last November.

White papers from our partners


This article is from the CBROnline archive: some formatting and images may not be present.

CBR Staff Writer

CBR Online legacy content.