February 9, 2001

TurboLinux going through layoffs and restructuring

Author: JT Smith

- by Robin Miller -
California-based Linux distribution publisher and software provider TurboLinux is laying off staff and announcing a management restructuring today. Jerry Greenberg, senior marketing v.p., says, "We built the company on the expectation of doubling every quarter. We're growing well, but not at that rate. We had to respond to it."Greenberg neither confirmed nor denied reports from anonymous sources that TurboLinux was laying off approximately 40 out of 120 employees and eliminating entire departments, but confirmed that his own marketing department was among those being hit hard.

TurboLinux is in the process of acquiring LinuxCare, as first rumored on Slashdot in mid-January, and Greenburg says some of the layoffs "are in anticipation of the acquisition."

Paul Thomas, TurboLinux CEO, will become CEO of the combined companies, but Greenberg says Thomas' "role will change" after today; Ly-Huong Pham, currently TurboLinux executive v.p. of worldwide development, is now the company's chief operating officer.

Greenberg says TurboLinux employees getting laid off are hearing the bad news one by one, rather then in a single mass meeting.

There is no word yet on the exact date when the LinuxCare acquisition will be complete. The best guess Lonn Johnston, TurboLinux corporate communications v.p., could give was, "any day now."

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