has laid off 250 U.S. workers as part of an ongoing restructuring program to slash costs, according to its company spokesman, Bruce Lowry. The majority of the jobs will be moved offshore to Bangalore, India, as labor costs are lower there. Lowry stated that, "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. The most important piece of that was, in fact, hiring engineers in India and reducing engineers in the U.S."
The company has previously announced to its investors that it would take between $35 million to $45 million in restructuring charges this year, and Lowry indicated that the costs associated with these layoffs are included as part of the restructuring expenses. We think this sadly says it all as to Novell’s loyalty to its U.S. workers. The reason given for company restructurings seems to always be due to improving the bottom line and keeping the investors happy.
What we find hard to believe is that U.S. employees are being discarded for cheaper replacement models, when it was the hard work and efforts of U.S. employees for so many years that helped build American-based companies into the success stories that they are. We believe in free enterprise, but we also believe in the golden rule: do unto others as you would have them do unto you.
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