Novell announced a major restructuring Wednesday, under which it will cut 600 jobs, switch its focus to Linux and digital identity software, and take action to split off its Celerant consulting group.

More than 10 percent of the server software maker’s 5,800 work force is affected, but the total is less than the 20 percent some expected. Further jobs could be lost as the Waltham, Mass.-based company sells Celerant, which has more than 400 employees, Novell said.

The move should reduce annual expenses by about $110 million but will require a charge of $30 million to $35 million for the company’s fiscal fourth quarter, which ended Oct. 31, Novell said.

Source: News.com