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Optical/IP

Layoffs Top 90,000

A total of more than 90,000 people have been laid off as a result of the bubble bursting in the optical networking industry, according to a survey conducted by Light Reading.

The results, published today (see Grim Reaping: A Downturn Tally), make grim reading. Among the 40 public companies represented in the Light Reading Index, 24 have undergone workforce reductions this year. The total body count comes to more than 84,000 people, and is continuing to increase.

Somewhat symbolically, the company that was riding highest last year -- Nortel Networks Corp. (NYSE/Toronto: NT) -- has taken the biggest fall. Its layoff total of 30,000 is three times bigger than the next company on Light Reading's list, Lucent Technologies Inc. (NYSE: LU)

In terms of percentages of total workforces, however, components manufacturers have come off considerably worse. Avanex Corp. (Nasdaq: AVNX) has shed 56 percent of its staff, and New Focus Inc. (Nasdaq: NUFO) has shed 43 percent.

Among startups, the companies that have made the deepest cuts in staff numbers include:

  • Tachion Networks, which has shed 37 percent of its staff, 169 people;
  • Valiant Networks Inc., 30 percent of its staff, 41 people;
  • WaveSplitter Technologies Inc., 26 percent of its staff, 83 people;
  • Alidian Networks Inc., 25 percent of its staff, 55 people.

    — Peter Heywood, Founding Editor, Light Reading
    http://www.lightreading.com
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    optijerk 12/4/2012 | 8:04:08 PM
    re: Layoffs Top 90,000 Gotham is next. Laying off 33% today.

    Tiburon and convergent laid off last week.
    RobertGerres 12/4/2012 | 8:04:24 PM
    re: Layoffs Top 90,000 Zaffire is close to market.

    Centerpoint is not.

    So looks like Zaffire team will be more or less intact.

    Centerpoint employees? Who knows?
    JEL 12/4/2012 | 8:04:34 PM
    re: Layoffs Top 90,000 Executive recruiter looking for a senior level operations pro in the optical networking space. VP of Operations in Dallas with a well-funded startup.
    GR 12/4/2012 | 8:04:41 PM
    re: Layoffs Top 90,000 Sorry, can't give more information.
    If you are interested, please send
    email to [email protected] We can
    definetely talk more.

    thanks
    GR
    cfaller 12/4/2012 | 8:04:45 PM
    re: Layoffs Top 90,000 lightmaster & saint:

    It's hard to imagine anyone getting $500+ million in additional funding in this market. In Cogent's case, it's unfathomable- Cogent has already racked up several billion in debt, and the business plan was insane even before the bubble burst! Can anyone say Winstar?
    lightmaster 12/4/2012 | 8:04:49 PM
    re: Layoffs Top 90,000 Saint,

    All of the BLECs have (had) a business model that assumed they could go back to the market for more capital forever. At the rate that Cogent is spending money to build infrastructure, it will take many years for them to turn cash positive and who knows how long to ever generate a positive return. However, that was always the plan. More than likely they had planned to IPO to generate cash by now.

    The issue now is: can they convice the capital market that they will every make money and therefore deserve to be given another half a billion to billion dollars of funding to complete their little experiment.

    On the other hand, they are Cisco's poster child for "IP+Optical", so maybe Cisco will keep them afloat.
    saint 12/4/2012 | 8:04:51 PM
    re: Layoffs Top 90,000 I'm trying to figure out how long Cogent Communications will stay around. After researching their business I don't see how they can maintain the burn rate.
    Any comments?
    lighthearted 12/4/2012 | 8:04:51 PM
    re: Layoffs Top 90,000 I hear that they shut down San Francisco operations? Could be a viscious rumor, but offices were cleaned out and items places in boxes...
    saint 12/4/2012 | 8:04:52 PM
    re: Layoffs Top 90,000 What type of network are you building ?
    flatpik 12/4/2012 | 8:04:55 PM
    re: Layoffs Top 90,000 Hah good luck!

    flatpik
    Page 1 / 6   >   >>
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