Corel has announced plans to pull its engineering operations in Dublin, Ireland, back into its corporate headquarters in Ottawa.
The restructuring will see 139 jobs go, although some of the affected employees will be invited to relocate to Canada.
In an effort to cut costs by US $40 million, there will be reductions in all departments – $18 million in salaries, benefits and third-party contracts; $12 million in advertising, marketing and development; $5 million in sales, and another $5 million in facilities, travel and corporate sponsorships.
When Michael Cowpland was CEO, the company was known for lavish sponsorship – professional tennis matches and hot-air balloons at trade shows. Since Cowpland left in August, following the footsteps of many another executives, the company had to face the hard facts.
“Corel needs to scrutinize its expenditures and align those with its expected achievable results,” said John Blaine, chief financial officer. “With this sharpened focus and discipline, we will be on a more solid financial footing.”
Derek J. Burney, interim president and CEO, said, “The decision to consolidate our engineering operations in Canada was by no means an easy one, but it’s a necessary step to streamline our costs and part of a broader strategy to support the company’s long-term growth.”
A core team will remain in Dublin to support Corel’s international customers.
Corel Corporation is known for its business productivity, graphics and operating system solutions on the Windows, Linux, UNIX, Macintosh and Java platforms.