Ethernet equipment

Hatteras Cuts Staff

12:50 PM -- We're getting reports that Hatteras Networks Inc. has laid off a substantial chunk of staff.

Numbers being tossed our way are as high as 50 percent, but CEO Kevin Sheehan seems to be telling media in the Research Triangle Park area of North Carolina that it's just 20 percent of the company's 60 employees.

From what we're hearing, though, that 20 percent is a doozy, including a couple of VPs whose names would turn up in a Light Reading search.

One tipster says employees were escorted from the building yesterday, after which Sheehan held a meeting to discuss the "reorg." We're told Hatteras is trying to secure a funding round, but Sheehan told Local Tech Wire that's not the case.

The decision was driven by the economy, of course. Hatteras's layoffs put it in the company of HP Inc. (NYSE: HPQ) and Sun Microsystems Inc. , and it certainly won't be the last firm to make cuts. (See Orckit Hunkers Down, Axes 90 Jobs.)

We'll be working on a full report, hopefully with input from Hatteras execs. Meanwhile, here's that Local Tech Wire report, which includes a bonus mention of Heavy Reading.

— Craig Matsumoto, West Coast Editor, Light Reading

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