Borland Press Release
Jeff Hopper
------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
BORLAND ANNOUNCES RESTRUCTURING
New Structure Reflects Focus on Software Developers
SCOTTS VALLEY. Calif. -- January 17, 1995 -- In a
move to focus the company's products and resources on the
software developer community and align expenses with revenue
expectations, Borland International Inc. today announced a
restructuring of its worldwide operations. The company said the
restructuring involves a reduction in worldwide headcount of
approximately 40 percent (approximately 650 employees) and
significant operational changes.
Borland will take a pretax restructuring charge in the
fourth fiscal quarter ending March 31, 1995. The amount of the
charge has not yet been determined.
The headcount reductions came from across all Borland
organizations. Of the approximately 650 employees affected,
approximately 50 percent will be U.S. employees. Certain
employees will continue to be employed by the company for a
transition period. The company expects most of the headcount
reductions to be completed by the end of the first fiscal quarter
ending June 30, 1995, at which point, Borland anticipates having
approximately 1,050 employees worldwide. Prior to today's
announcement the company employed approximately 1,700
people worldwide.
Borland President Gary Wetsel said, "Borland's roots are
as a computer languages and tools company, serving the needs of
the software development community. This re-engineering effort
is designed to size our organization appropriately, and reflects
our renewed commitment to being a leading provider of software
development tools.
"Borland is a recognized leader in serving the needs of
software developers with Borland C++, dBASE and Paradox.
Our objective is to leverage our tradition for delivering the best
tools into new growth opportunities, including the client-server
market. Delphi95, a new visual development tool that has
received multiple industry accolades, is scheduled to ship later
this quarter. Our current products, with the addition of Delphi95,
form the foundation of our strategy to evolve our product line to
next generation solutions, keeping our customers on the leading
edge of technology," said Wetsel.
Borland said it was able to consolidate several operations
because it is targeting its products to software developers.
Previously, Borland designed and marketed a wide range of
general purpose desktop software products aimed at virtually all
classes of personal computer users.
"Focusing on the software development community
allows us to eliminate the costly development and marketing
activities associated with providing products for the full breadth
of personal computer users," said V. David Watkins, newly
appointed vice president of Marketing and Support.
Cost Cutting Actions
In addition to the headcount reductions, Borland
announced a series of actions to reduce its cost structure. These
actions include:
* Centralizing the development and marketing organizations
along functional lines, eliminating redundancies and
improving efficiencies. In addition, technical support has
been integrated with the marketing organization in order to
increase customer focus.
* Streamlining and focusing the development process on core
products.
* Outsourcing manufacturing operations in the United States
and Europe.
* Outsourcing certain marketing and other support activities.
* Implementing programs to reduce discretionary spending.
* Re-engineering non-U.S. operations in order to reduce costs
and focus resources on markets with the largest revenue
potential. Borland will maintain principal operations in the
U.K., Germany, France and Japan. The company plans to
close or significantly reduce operations in all other regions.
Borland will continue to sell and market its products through
authorized distributors in regions where offices will be
closed.
Organization Alignment
As part of this re-structuring effort, Borland announced
newly created positions for several key executives.
V. David Watkins, 38, formerly vice president of the
dBASE Business Unit, was named vice president of Marketing
and Support. Watkins, who has been with Borland for over five
years, will be responsible for marketing efforts for all products as
well as technical support services. Before joining Borland,
Watkins was a vice president at Symantec, holding positions in
product management, marketing, support and development.
Prior to that he was a group marketing manager for Activision.
Paul Gross, 33, formerly vice president and general
manager of Borland's Languages and Client-Server Business unit,
was named to the newly created position of vice president of
Research and Development. Gross will be responsible for all
aspects of Borland's product development organization. Gross
joined Borland in 1989 and has served in a variety of
management positions in Borland's Languages Business Unit.
Prior to Borland, Gross held positions in product management,
sales and software development for languages and databases at
Gold Hill Computers and Infocom.
Borland also announced the appointment of David
McGlaughlin, 56, to the newly created position of vice president,
International Sales and Operations. McGlaughlin will be
responsible for all Borland's non-U.S. operations. Most recently,
McGlaughlin was managing director for the company's
operations in Asia/Pacific, Australia, Japan, Latin America and
Canada. McGlaughlin joined Borland in 1991 as part of the
company's acquisition of Ashton-Tate Corporation. He had been
with Ashton-Tate since 1989 serving as managing director of
Ashton-Tate Canada. Prior to that, McGlaughlin spent six years
as Canadian president of Amdahl Corporation. McGlaughlin's
career also includes executive and management positions at
Memorex Corporation and IBM.
Frank Vaculin, 37, who has been with Borland for two
years, remains vice president of U.S. Sales and Customer
Service. Prior to joining Borland he was director of sales at EFI
and Software Publishing Corporation.
About Borland
Borland International Inc. is a leading provider of
products and services for software developers. Borland is
distinguished for its high-quality software development tools,
which include Borland C++, dBASE and Paradox. Borland's
award-winning products are supported through comprehensive
programs for small- and large-sized software developers,
corporate software developers, value added resellers and systems
integrators. Founded in 1983, Borland is headquartered in Scotts
Valley California.
###
Contact:
Steve Grady
Borland International Inc.
(408) 431-1621
sgr...@wpo.borland.com