Novell Lays Off 250 U.S. Workers

Novell laid off 250 workers in the United States as part of an ongoing restructuring program to slash costs, company spokesman Bruce Lowry said Friday.

Many of the jobs will be moved to Bangalore, India, where labor costs are lower than in the United States, he said.

"While it's not a one-to-one match of jobs lost in the U.S. to jobs gained in Bangalore, the most significant impact was on product development," Lowry said. "The most important piece of that was, in fact, hiring engineers in India and reducing engineers in the U.S."

The company has previously told investors that it will take $35 million to $45 million in restructuring charges this year. Costs associated with these layoffs are included as part of that $35 million to $45 million, Lowry said.