Hatteras Chops Headcount
About 20 employees were laid off, leaving Hatteras with roughly 60, CEO Kevin Sheehan says. Cuts were made in all areas of the company; Sheehan denies rumors that sales and sales engineering were particular targets.
"Every department was affected by the cut, and we didn't hit any area harder than another," he said.
Sheehan confirms that two vice presidents are gone from the company but won't give their names. Speculation is that VP of marketing Gary Bolton and VP of software Andre Fredette are the two in question; a source contends that VP of sales Christopher Cook also left the company a few weeks ago. Light Reading wasn't able to reach any of the three for confirmation.
Sheehan insists that business is doing just fine, with this year's sales doubling last year's figures. In that regard, Hatteras's preemptive move reflects the logic Orckit Communications Ltd. (Nasdaq: ORCT) preached in cutting one-third of its employees this week. (See Orckit Hunkers Down, Axes 90 Jobs.)
"Although we're having our best year in history and record growth and a record quarter, we believe the financial crises going on around the world are real and will last, so we wanted to be proactive and tighten our belts," Sheehan said. "We can't say, in a fiscally responsible way, that we'll be insulated."
Hatteras looked at expense-cutting possibilities everywhere in its business, trimming operating expenses in at least 30 areas.
Sheehan admits Hatteras isn't yet profitable but adds that the company isn't in need of more funding. Hatteras's last announced funding was a $21 million round in 2006. (See Hatteras Closes $21M Round.)
— Craig Matsumoto, West Coast Editor, Light Reading