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Novell president ousted?
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June 5, 1997: 8:39 p.m. ET
Reports say Marengi to leave after $14.6M second-quarter loss
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NEW YORK (CNNfn) - Novell Inc. President and Chief Operating Officer Joseph Marengi will reportedly be among the 1,000 employees losing their jobs at the computer networking company.
Several reports published Thursday said Marengi, who was serving as Novell's interim president following the departure of former Chief Executive Officer Robert Frankenberg, was fired as part of an effort by Novell Chairman and CEO Eric Schmidt to cut costs.
The news comes one week after Novell posted an unexpected second-quarter loss of $14.6 million, or 4 cents per share. The company said it would take a restructuring charge of $25 million to $35 million in its third quarter.
Reports indicated he will receive a lucrative severance package although no details were disclosed.
Marengi had applied for the top position but was passed over for the top spot in favor of Eric Schmidt, the former chief technology officer at Sun Microsystems Inc.
Despite the widespread reports, Novell officials had no comment Thursday.
"We have no comment on the issue. We don't comment on market rumor," said company spokesman Austin Edgington.
Novell will employ about 4,800 after the cuts.
The company said the moves will not affect the delivery of products already in production, including BorderManager and Novel Directory Services for Microsoft NT Server.
Novell shares Thursday gained 1/32 to close at 7-21/32.
--Cyrus Afzali
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Novell
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