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SuSE Linux cuts jobs, hires new CEO

Stephen Shankland, CNET News.com CNet

Published: 24 Jul 2001 10:59 BST

German Linux seller SuSE has laid off about 10 percent of its staff -- approximately 50 people in several German locations -- while promoting chief financial officer Johannes Nussbickel to chief executive officer.

Co-founder and former CEO Roland Dyroff will become a member of the supervisory board, the company said on Friday.

The job cuts, affecting mostly non-technical personnel, were spurred by slower spending in the computing industry, the company said. The management change was part of a shift to focus from technology matters to business matters.

Times are tough in the Linux market. Red Hat, the leading Linux company, achieved profitability -- but with lowered revenue and $27.6m in one-time charges. French Linux seller MandrakeSoft is trying its own initial public offering -- but on an unregulated market. And VA Linux Systems is exiting the computer business to focus on software.

SuSE, which believes the German Linux market is ahead of the US market, laid off 30 US employees in February.

Other SuSE supervisory board members include executives from SGI and Compaq.

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