Feeds

Enterasys slashes headcount by 30%

Big cost cutting

  • alert
  • submit to reddit

Build a business case: developing custom apps

ComputerWire: IT Industry Intelligence

Enterasys Networks Inc is to lay off about 730 people, 30% of its workforce, as the company executes a restructuring plan aimed at saving costs. The layoffs follow last week's management shakeout, which saw the resignation of its chairman, CEO and president, as well as vice chairman and EVP of worldwide marketing, and the COO.

"The cost cutting initiatives are an important first step designed to achieve cash break even as soon as possible," said William O'Brien, who is acting as interim CEO until the board finds a replacement. "We are continuously evaluating additional business improvement opportunities to increase sales effectiveness and reduce costs."

Enterasys, which makes internet routing and security equipment, is currently the target of a regulatory investigation by the US Securities and Exchange Commission, which is looking into some of its spin-off companies.

The probe is believed to relate to accounting issues the company uncovered in its Asia-Pacific business. These issues are related to Enterasys's recent warning that first-quarter revenue will be less than it initially expected.

© ComputerWire.com. All rights reserved.

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.