Corel has laid off 18 per cent of its global workforce – about 120 jobs – following its takeover by an investment firm.

Corel was taken over by Vector Capital six weeks ago in an acquisition worth $120 million. Layoffs are being applied across "all areas" of the company, the report says.

Company president and CEO Derek Burney told Canada's Globe and Mail: "The decision, though difficult, was necessary to eliminate the additional costs associated with public ownership and meet the company's business objective of profitability."

Burney said the company would focus more of its resources on CorelDraw and WordPerfect.

"Corel's graphic applications, along with WordPerfect, are now a key focus for us, and we'll soon have more to say on how each product will be focused," a Corel insider told Macworld.

Job-cuts were announced yesterday when the 120 employees were informed they were to be let go. The insider told Macworld UK that a kind-of party-atmosphere permeated the company yesterday, as colleagues stood together to prepare for the worst. The cuts had been expected.

Founded in 1985, Corel became one of Canada's best-known technology companies.