Alidian Restructures

Alidian Networks Inc. laid off another 50 employees and shuffled its top managers, the company confirmed today. After going through two rounds of layoffs this month, making for three in five months, the metro equipment maker has cut its headcount from 220 employees to fewer than 100 (see Alidian Lays Off Again and Alidian Lays Off 25%).

As part of its management restructuring, Alidian cofounder and engineering boss Dave Newman will take the CEO spot from Bart Shigemura, who will stay on as the company's chairman. Newman recently took on the role of venture partner with Charles River Ventures to help that firm scout up-and-coming optical components companies.

Newman says the restructuring won't affect the company's ability to support its customers and meet its engineering deadlines: "The core engineering team is intact, as is the North American sales force and the sales force in any region outside the U.S. where we were seeing some activity."

Al Sadler, Alidian's vice president of operations from October 1999 to July 2001, has returned to the company as its chief operating officer. Sadler had left Alidian to work for RouteScience Technologies Inc., where he was vice president of manufacturing.

Alidian will formally announce the layoffs, Sadler's return, and Newman's promotion on Monday.

Alan Nilsson, Alidian's director of photonics, left about a month ago and is now a principal engineer at Zepton Networks Inc. George Schnurle, a hardware engineer who'd been with Alidian for two and a half years, was cut during the layoffs. Also among those cut were Ted Rado, Alidian's director of product marketing, and Robert M. Lefkowits, vice president of marketing. Lefkowits will continue to act as an advisor to Alidian through the end of the year.

During the last round of layoffs, at the beginning of this month, many of Alidian's staff were forced to take a 10 percent pay cut. After having raised $100 million since its inception in 1998, Alidian continues to search for funding, as its top managers hit the road for a series of meetings with customers. Its product is currently deployed in several carrier networks and is in trials with a number of others, but the company won't comment on its revenues.

- Phil Harvey, Senior Editor, Light Reading
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poster 12/4/2012 | 7:39:59 PM
re: Alidian Restructures I'm going with 4 months time-to-live on this one.

I think lightreading needs a ttl contest. guess the time-to-live for top 10 optical bombs. call it: "optical death march". the winner gets free subscription to the newsletter.
tarzan 12/4/2012 | 7:39:58 PM
re: Alidian Restructures Rumor has it they closed another big round. LR - have you heard anything?
big daddy 12/4/2012 | 7:39:58 PM
re: Alidian Restructures Poster, go get your own car. Let's see how you do in a crowd.
rbkoontz 12/4/2012 | 7:39:56 PM
re: Alidian Restructures 4 months is awfully generous. Their BOD likely said 90 days, which means about 100 days to implosion.
laserboss 12/4/2012 | 7:39:55 PM
re: Alidian Restructures they already had 80 mil........what esle they need......how long that will last........they already have 50+ employee........isn't it too much without knowing what they do and only 6 months in inception........i wonder
Rockhead 12/4/2012 | 7:39:52 PM
re: Alidian Restructures someday LR "posters" will realize that restructuring a company in fact prolongs its existence and enhances its chances of success. and in a corollary, those companies that do not restructure are the ones smart money should bet against in ttl wagers. denial is the enemy of recovery, my friends. let us congratulate those that face the reality of this market before all degrees of freedom are gone.
HarveyMudd 12/4/2012 | 7:39:51 PM
re: Alidian Restructures There are many products similar to the products offered by Alidian. It will be difficult to market this product to carriers.

Alidian's days are numbered regardless of what they do.
sailor 12/4/2012 | 7:39:50 PM
re: Alidian Restructures The way I see it, any startup that has to restructure in these times is doomed. I've observed many companies trying to refocus their effort on a different market (one that still exists). You end up late to market, with a product that can't possibly be as good as a competitors who had better focus and direction.

Restructuring worked a lot better in 1999 than it does in the economy of today. You may last a little longer, but the result is inevitable.
ata 12/4/2012 | 7:39:47 PM
re: Alidian Restructures It is very easy to blame the sales organization.
This forum is not the right place to clean the dirty laundry of Alidian.

Let's just say that Alidian's "best and brightest" engineering team did not have a clue about what market wanted in a DWDM product.

Now, after a year and a half, THE BOX IS A DAMN GOOD ONE. Thanks to Sales and Marketing hitting enginering on the head with a 4x4 for features necessary for the current market. However during this 'development phase" the "original" market (CLEC) just evaporated.

If the "original" product definition had not been modified by Sales and Marketing Team, the box would have been a nice "door stopper" for the current market.

ext88 Can you spell "timing"?

I am also one of the casualties of the latest layoff from the sales team.

By the way Ata is my real name. I do not see any need to hide behind a handle. Can we see your real name ext88?

Before you call everybody "complete idiots" I would suggest you look at the mirror first.

Enuf said.
Purplegang 12/4/2012 | 7:39:46 PM
re: Alidian Restructures When Alidians top VC's forced mass layoffs like the ones carried out over the past 60days.
They over looked one important concept.

Many of the people involved in these layoffs do have long memories as well as families to feed. And when the good days come back to Silicon. Which they always do.

Few of us, if Any, will accept employment with companies that are backed directly by your money. Thats the only thing you can take to the bank right now.

As course, thats assuming that the investing public will ever trust your judgement in funding start up companies again.

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