By Aled Herbert, 4 May 2000 14:15
NEWS Troubled Linux services company, Linuxcare, has been forced to lay off around 70 members of staff in an attempt to cut expenses. In December 1999, Linuxcare had around 130 employees with plans to take on another 250 staff throughout 2000. However, in April the company was rocked by the resignation of both its CEO and CIO in April and was forced to delay a planned IPO. Linuxcare announced a net loss of $21m on revenues of $3m in 1999 in a Securities Exchange Commission filing. The company's original service was phone-based technical support. In addition, it now plans to offer a range of professional services including customised versions of the operating system for companies who want to put their own brands on their Linux products. The news of the job cuts is likely to resurrect rumours that the company is to become an acquisition target for a large Linux vendor such as Red Hat or VA Linux.
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