LinuxCare Layoffs Announced

I know lots of folks at LinuxCare, and I thought at one time, for about a microsecond, about applying for a job with them. I was really glad I didn't back then, and I'm relieved now that my instincts were right.

After the sudden departure last month of CEO Fernand Sarratin and the company's decision to call off its initial public offering (IPO) on Monday, LinuxCare will cut costs and refocus on high-margin services such as enterprise integration. The spokesman said the CEO search and the current IPO climate were the main reasons for calling off the IPO, which, in turn, necessitated the cuts.

"Because of the delay in our IPO, we needed to reduce our burn rate and decrease our costs," said Michelle Nemschoff, senior director of corporate communications for LinuxCare.

Jeff Hirschkorn, an analyst at IPO.com Inc., predicted the company will fare even worse in the near future.

"LinuxCare will get bought out or go bankrupt, forget about an IPO," said Hirschkorn.