Qwest's list of "synergy projections," filed with the Securities and Exchange Commission (SEC) last week, detail some major job cuts that would have been considered by a combined Qwest/MCI. Qwest, which employs about 41,000 now, said it would cut between 12,000 and 15,000 jobs, or 15 percent to 18 percent of a Qwest/MCI combo.
The combined carrier was expecting to free up 2.8 million square feet of office space, saving $57 million a year, with layoffs, SEC filings say.
Qwest would have cut 14 percent of the combined carrier's channel sales staff "in overlapping direct, staff, and support channel resources." It would have also knocked out 20 percent of the two carriers' combined wholesale groups "which have almost complete redundancy of customer lists."
Finally, the combined carrier would have knocked off a whopping 35 percent of jobs from its "finance, IT, HR, Legal, Product Management, and Corporate Communications" departments.
Now that MCI has once again hopped in Verizon's arms, the question remains: With whom will Qwest count synergies now?
While you ponder that, let's move on by bringing you the most interesting hirings and firings from the past few days:
For months, there have been rumors of a Sycamore closure, especially after the company brought in Morgan Stanley to help it explore "strategic alternatives." Those would be, Headcount assumes, alternatives to being a solid, profitable company.
The company confirmed this week that Steve Diamond has taken the job as CEO of Quarry, replacing Ian Mashiter, the founder of Ennovate Networks. Diamond hails from The Sprout Group, where he was a general partner and vegetable grower. He is also the former chairman of Internet Photonics, which Ciena Corp. (Nasdaq: CIEN) bought in 2004.
Diamond says Quarry is going through some significant changes and has added 26 people to its payroll this year alone, giving it around 90 people overall. That number will grow to 110 by the year's end, Diamond says.
While Quarry won't reveal much else, it did let slip that it has added a former Nortelian, Chris Vaughan, as VP of product development.
Sources say Salira was running low on cash and was looking for an exit. Hitachi won't say how much it spent on Salira, but the company says the deal gives it an EPON product portfolio, including some GE-PON (Gigabit Ethernet PON), which gives it the ability to build last-mile networks with speeds of up to 1 Gbit/s in each direction.
"GE-PON is essential if you want to be a strong player in the Asian market," David Foote, CTO of Hitachi's Hitachi Telecom (USA) Inc. subsidiary, tells Headcount.
The big picture, for Hitachi, is pretty clear. The company becomes one of the only vendors able to offer BPON, EPON, and GPON gear to carriers on any continent. "Our intent is to have the technology in our hip pocket and then to take that and commercialize it for each market," Foote says.
Hitachi has a formidable PON business worldwide, and it counts NTT Communications Corp. as one of its largest customers. Salira's customers include China Netcom Corp. Ltd. (NYSE: CN; Hong Kong: 0906) and GuangZhou Pantong Information Broadband Network Ltd., colloquially known as "Panyu Cable."
The company also, for a time, called itself "an innovator in delivering transport solutions for data center connectivity."
Somewhere along the way, however, Celion fell off both horses and was trampled. Then it was eaten by a large salmon, which was later eaten by a bear. Headcount has learned that Celion – in spite of several Grammy wins – is no more, apparently having closed up shop several weeks ago.
Headcount's calls to the company never made it – its phones have been disconnected.
"Since August 31, 2004, Raymond James and Copper Mountain’s management contacted over 45 prospective strategic partners… Tut Systems was the only prospective party that expressed definitive interest in pursuing a transaction," Copper Mountain reveals in a recent SEC filing.
The good news? After 45 firms passed on a cheap-as-chips way to get a complete central office-based B-RAS product line, the Mountain did come to Tut – but Tut only wants it for its cash, as was also the case with its aquisition of CoSine Communications Inc. (see Tut Takes On CoSine).
Where's he going? "He won't say," a spokeswoman says. "He says it's still under NDA, so he's not disclosing it." Bubb, who joined Intel with the Dialogic acquisition of 1999, left the company last week.
Taking his place will be Doug Davis, a vice president in the Digital Enterprise Group. That's been the home for network processors since Intel's January reorg, which split up the communications group. Most of the chips wound up with Digital Enterprise, which is run by CTO Pat Gelsinger, while the optics became part of the Digital Home Group.
We wrap up, as usual, with a summary of other industry appointments and disappointments from the past few days:
- Mahi Restructures & Swims East
- Marconi in Turmoil
- Avanex Does a French Trim
- Landlord Takes Polaris
- Trimming Continues at JDSU
- Alcatel Gets Quigley With It
- Lucent Converges, Jobs to Go
- TeliaSonera Plans Job Cuts
- Adtran Appoints New VPs
- PowerDsine Sues RedHawk
- OSS Decline Hurts Spirent
— Phil Harvey, News Editor, Light Reading