The majority of the staff reductions will come from changes to the Cupertino, Calif.-based company's international operations, according to Borland officials. After the layoffs, a geographic consolidation and the upcoming sale of its developer tools group, the company expects annual savings of US$60 million. Borland had announced in February that it plans to divest itself of its developer tools business.

The changes announced Wednesday are designed to give the company an operating model that can "more effectively support our long term strategy for growth and profitability," Tod Nielsen, Borland's CEO, said in a statement.

The restructuring also includes combining Borland's sales and professional service functions to create a new field operations office and folding customer support into research and development. Merging customer support with R&D is designed to ensure better responsiveness to customers and create a tighter feedback loop between them and product engineering, the company said.

Borland also has created a new business operations function to focus on aligning internal processes and systems. That group will report directly to Nielsen.

As for the divestiture of the tools group, Borland plans to have a buyer identified in the next few months, officials said. A "strong number of qualified bidders" has already expressed interest.