Enablence Trims Staff

Enablence Technologies Inc. (Toronto: ENA) has trimmed staff a bit, reportedly cutting some key employees from the recently acquired Pannaway Networks in the process. (See Enablence to Buy Pannaway.)

One source says the cuts were minor, coming out to barely more than a dozen employees. But another confirms that Pannaway's vice president of engineering, Michael "Kip" Lebar, was among those laid off.

Lebar, who's still mentioned on Pannaway's Website, will be leaving at the end of the year. Pannaway executives did not immediately return a call requesting comment.

Sources disagree on the size of the layoff, but one close to the company estimates it at about 14 employees out of roughly 200.

Enablence CEO Arvind Chhatbar wouldn't discuss specifics of the layoffs, nor would he confirm Lebar's departure. He did point out, in a email to Light Reading, that the layoffs shouldn't have come as a surprise. Enablence just completed its roughly $7.6 million purchase of Pannaway, and the company already had an access-gear vendor on its roster in the form of Wave7 Optics Inc. (See Enabling Enablence and Enablence Acquires Wave7.)

"One of the reasons and benefits of the Pannaway acquisition were the synergies between the two and the opportunities for significant cost reductions that would allow us to merge Pannaway with our FTTx Networks Division [aka Wave7]," Chhatbar wrote.

One source notes that Wave7 lost some employees too, although another indicates Pannaway took the bigger share of cuts.

Chhatbar tells Light Reading that Enablence expects to continue supporting both Pannaway's Magnm products as well as Wave7's Trident7 line.

There does seem to be some benefit to carrying both, as Pannaway offers copper-access options that Wave7 didn't have, while Wave7 has the stronger international sales presence of the two. (See Wave7 Wins Paris Deal.)

Pannaway CEO Mark Carpenter recently sat down with LRTV to discuss GPON, access networks, and the merger. Check out the video:

— Craig Matsumoto, West Coast Editor, Light Reading

Fotons 12/5/2012 | 3:26:08 PM
re: Enablence Trims Staff Fourteen layoffs seems like just the beginning: Enablence's press release says that "...the integration, once fully implemented, will result in net cost savings of over $11 million a year."

Unless they are paying salaries of three-quarters of a million dollars per year to those laid off, a lot more heads look likely to roll if they haven't already.

vallencourt 12/5/2012 | 3:26:07 PM
re: Enablence Trims Staff The math is less fuzzy when you see the full picture...they let go A LOT more than 14...
My buddies from Pannaway and Telstrat are telling me its closer to 40-50% of the workforce.
The former Telstrat support office in Plano was DECIMATED - 4 bodies left from a staff of 35. They were already told that they will be let go with their last days staggered between the end of December/January. How are they going to support the hundreds of former Telstrat customers out there?
HereGăÍs the damage that IGăÍve come across between Pannaway and Telstrat so far beyond the 31 mentioned:
Development: In addition to Kip G㢠Catherine, Bonnie, BrianGă¬rumor is that Skoob (CTO) is out too
Sales: Marek, Mueller, Ashmore
Support: Chris, Randy, Lupher
This is on top of spot reductions like Steve Noble and Phil Laramore over the last few months.
That's a lot more than 14 and IGăÍm not even lookingGă¬
skidos 12/5/2012 | 3:26:06 PM
re: Enablence Trims Staff please visit TXP Corporation or Cambridge Industries for info.

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