Original URL: http://www.theregister.co.uk/2005/09/13/good_confirms_layoffs/

Good Technology confirms layoffs

Bad day for sales team

By Tony Smith

Posted in Financial News, 13th September 2005 15:10 GMT

Exclusive Nokia's mobile email software sidekick Good Technology today confirmed claims that it has made a large number of its workers redundant.

In a statement made to The Register, the company admitted that it had implemented a "reduction in staff largely in our inside sales team".

The company's statement follows allegations made recently that it had rid itself of "70-80 per cent" of its workforce.

"Most of sales and service were laid off," claimed one ex-employee, according to a posting on the FuckedCompany.com website. "They're changing their sales model from direct to indirect through carriers across the board."

Such a move came as no surprise. As RIM-rival Good has built up its push email and corporate data access software business, it has shifted from targeting corporates directly to servicing sales through carriers and value-added resellers.

In July, it signed Sprint, its second carrier sales partner, joining Cingular. It has worked alongside other carriers in joint sales pitches, though when these have been successful, it has effectively sold its GoodLink and GoodAccess products direct.

July also saw Good acquire "assets and people" from wireless data specialist JP Mobile. Following the takeover, it's no surprise that the company would rationalise the workforce.

Good would not comment on the scale of the redundancies. Sources familiar with the matter, however, claimed the quoted figure was something of an "exaggeration".

Good did say it was "increasing its engineering headcount and field-sales resources". To what extent that increase arises simply from the JP Mobile deal or is a broader growth programme is not clear.

"Good is realigning its business to take full advantage of our recently announced reselling relationships with two of the largest carriers in the US: Cingular and Sprint," the company said. "As we increasingly leverage the power and scale of these carriers, we're realigning our internal resources to match their needs."

Good today was named a key partner in Nokia's move to take control of the corporate mobile email market. Good's software will form a key part of Nokia's Business Center client and server offering, which the mobile phone giant will roll out in Q4 this year. ®