Novell finding its way back in competitive, fast-paced tech business

PROVO — In 1979, a startup firm called Novell Inc. began operations in Utah County and was instrumental in making the Utah Valley a focus for technology and software development.

The company's technology contributed to the emergence of local area networks, which displaced the dominant mainframe computing model of that era. At one time, Novell was valued at around $8 billion, and was the world's second-largest software company behind Microsoft.

But in the fast-paced, ever-changing world of technology, companies that fail to innovate and stay ahead of competitors will soon find themselves irrelevant, victims of the same forces that propelled them to the top.

At Novell's peak in the ’90s, 70 percent of the world's computer networks were run with its system management software. More recently, the company's fortunes have faded under pressure from Microsoft and other Web-based competitors — prompting Novell to try to reinvent itself as a distributor of the free Linux operating system.

Just last week, Novell announced the layoff of hundreds of employees from its once bustling Provo campus, only days after the company was sold. The Attachmate Group, based in Houston, announced that it had completed a $2.2 billion acquisition of Novell and the company's headquarters was being relocated back to Utah County from Waltham, Mass. — where it had moved in 2004.

While Novell would not offer specific numbers, an employee said approximately 800 people companywide would lose their jobs — with most of those reductions in Provo.

In 2000, Novell employed more than 6,000 workers worldwide, including 2,000 in Utah County. Today, the number has fallen dramatically to approximately 3,000 around the globe, though the company would not specify how many Utah workers would remain following the recent layoffs.

"Out of respect for those affected, we are not disclosing specific figures on layoffs," said Ian Bruce, Novell director or public relations in an email. "The restructuring affected offices worldwide, not just Utah."

Inevitably with these kinds of complex acquisitions, there will be some workforce reductions, he added.

As a result of the merger, Novell stock stopped trading publicly and the company was selling patents to Microsoft consortium CPTN Holdings LLC for $450 million.

Despite the layoffs, Attachmate and Novell are putting a positive spin on the layoffs, announcing that Novell would be coming "back to its roots and moving the headquarters back to Provo and back to Utah."