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