When it acquired SuSE Linux, Novell said a two-year business reorganization would take place. Barney noted that the North American sales force was reorganized, several key Novell products were re-engineered and other changes resulted.

"With all those pieces in place, now is an opportune time to restructure, to improve our financial footing and the line costs going forward under this business model," he said.

No other job cuts are planned.

"We're pretty confident that with this restructuring that we're aligned pretty well with the revenues that we're currently seeing. Obviously, you can never say never, because it's a dynamic industry and things change. But nothing is planned. This is not like Phase One of a multiphase plan."

Some people no doubt will see Wednesday's move as a "declining-business kind of action," he said.

"But this really is a restructuring, to be in line with revenues at the moment but also to put us in position for this revamped product line and revamped corporate strategy we have going. Things have changed and continue to change at Novell. In order to compete, it's the nature of this industry, which almost by definition requires a reinvention periodically, and that more reflects what this is about."

In a prepared statement, Jack Messman, Novell's chairman and chief executive officer, described the restructuring as "part of the comprehensive transformation of Novell's business that the management team has been designing and implementing over the past year."

"While it is a difficult decision to eliminate positions in our talented and dedicated work force, this move is necessary to ensure that our costs are more closely aligned with our business strategy," Messman said. "This is a decisive, yet disciplined, cost-reduction action that balances the need to be fiscally prudent with the need to continually seek growth opportunities and generate long-term profitability in a highly competitive marketplace."

Novell said it expects to have a restructuring charge of $30 million to $35 million in the fiscal fourth quarter ended Oct. 31.

"As a result of the restructuring, product development and consulting resources are now more focused on the company's growth businesses, Linux and Identity," Novell said in announcing the changes Wednesday. "Novell also expects to continue to evaluate non-core consulting activities. The company maintains its commitment to its sales resources, while it continues to align sales skills with its business strategy."