Borland Will Restructure, Eliminate 300 Jobs

Borland International Inc. said Thursday that it plans to eliminate 300 jobs, or nearly 30% of its work force, as part of a global restructuring aimed at restoring the Scotts Valley-based company to profitability in fiscal 1998.

In a statement, the computer software firm said the restructuring plan involves significant reductions in operational expenses and the implementation of new programs aimed at boosting revenue.

“This restructuring is the beginning of a plan to grow Borland into a thriving company known for the value it provides to organizations building client/server and Internet/intranet applications,” Chairman Delbert Yocam said. “We plan to leverage Borland’s rich heritage of high-quality and high-performance software development tools to expand our business into new markets.”

Borland stock rose 87.5 cents to close at $7 in Nasdaq trading.

Borland said it will take a charge of $24 million to $30 million in its fiscal 1997 fourth quarter, which ends March 31, to account for the restructuring.

It said it also aims to achieve cost reductions through new marketing and support programs that will replace programs that no longer fit its core business or strategic focus.

The company said the restructuring plan is expected to produce annual operating cost savings of more than $30 million and a similar amount in product restructuring savings.

Borland will cut marketing expenses by shifting advertising from print and direct mail to the World Wide Web, Yocam said.

Borland has been plagued by financial losses and slow sales.