Wed, January 07, 2009 — InfoWorld — Borland Software's CEO has resigned, taking a position at VMware, and Borland also is reporting a workforce reduction of about 15 percent.

Tod Nielsen, who had served as Borland president and CEO since November 2005, has become the chief operating officer of VMware, a newly created position, VMware said Tuesday.

Borland, meanwhile, is undergoing a significant reorganization. It will reduce its workforce by approximately 130 employees. The reduction is expected to be mostly completed by the end of the first quarter of 2009, according to a statement released by the application lifecycle management tools company on Tuesday afternoon.

The majority of the reduction is part of a plan to "recalibrate [Borland's] go-to-market strategy" under Rich Novak, senior vice president of worldwide field operations, the company said. A new structure under sales and marketing creates an enterprise solutions team focused on selling new Borland Management Solutions and providing for a global inside sales team, Borland said.

Erik Prusch, who had served as Borland CFO, has been appointed Borland's acting president and CEO.

"Over the past two years, I've seen Borland make enormous strides both in terms of operational improvements and delivering on its Open ALM vision," Prusch said in a statement released by the company. "We have the products, talent and financial footing to withstand near-term economic uncertainties and continue the strategy we've outlined to investors. I'm excited to lead Borland through its transformation to an innovative leader in the ALM market, committed to delivering the highest quality products and services to our customers."

The company expects to report total revenue in the range of $38.5 million to $40 million for the fourth quarter of 2008. The company also announced its Section 16 officer Peter Morowski, senior vice president of research and development, will leave the company.

Borland anticipates reporting continued progress in cost control but also expects a goodwill impairment charge for the fourth quarter.

At VMware, Nielsen will provide a focus on business, marketing and operations to enable President/CEO Paul Maritz to devote more time to product strategy and development, VMware said.

"In this newly created role, Tod brings unique skills and capabilities that will help us improve our operational focus and enhance our execution across all areas of the business," Maritz said in a statement released by the company.

"VMware is an impressive company that is in the enviable position of giving customers a significant return on their IT investment which is becoming only more important in these challenging economic times," said Nielsen in the company statement.

© IDG 2009