In context..
..others are laying off too - Microsoft are and it acts as a barometer for the whole industry. Novell are notoriously coy on the number of folks they lay off, but a number of European offices were closed at the back end of last summer. I suppose if they were next to useless, no-one will miss them (the offices, I mean).
There is still a huge schism between the Provo bunch and the Waltham bunch that's yet to be addressed. If Novell could cure the left hand-right hand syndrome they've got, they'd look pretty good (and I speak from a partner perspective). That's not even counting the drivel coming out of India...(ZCM anyone?)