Corel has slashed 22 per cent of its workforce – 220 people – in an effort to reduce costs and return to profitability, the company said yesterday.

The job cuts affect all departments within the organization, and are aimed at producing a payroll cost reduction of around $12 million a year on an ongoing basis, Corel said.

Corel president and chief operating officer (CEO) Derek Burney said: “While we anticipate revenue growth for fiscal 2003, we are adopting a conservative approach in aligning our cost structure to reflect the company's current revenue patterns.”

The company's workforce now stands at 769 employees worldwide.

Corel is taking a one-time restructuring charge of between $5.8 million and $6.3 million during the current quarter.