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Optical/IP

New Wave of Startup Layoffs

July has been a tough month for employees working for telecom equipment startups. In the past two weeks, Light Reading has confirmed reductions by at least four startups: Caspian Networks, Allegro Networks Inc., Movaz Networks Inc., and Centerpoint Broadband Technologies Inc.

The root causes appear to be obvious: The overall telecom industry continues to struggle, and venture capitalists appear to have lost their enthusiasm for the space (see Telecom VC Slump Continues).

The companies cutting back aren't concentrated in any one particular area. Everyone from core IP routing vendors to those focused on the supposedly hot metro access markets have all found it necessary to cut back on spending.

Most of the companies claim that the layoffs are not a sign of trouble, but are simply a prudent way to manage their businesses as the telecom sector continues to fall victim to sinking stock prices and carrier cutbacks in capital spending. In fact, three out of the four startups making cuts this month have closed funding rounds this calendar year. Here's a wrapup of the latest cutbacks:

  • Caspian Networks, which makes core IP routers, reduced its workforce by 16 percent last Thursday. The company currently has a headcount of about 220. Caspian had raised $120 million in its fourth round of funding back in February, bringing its total to $262 million (see Caspian Starts Fresh With $120M). That round, a down round that sources say diluted the equity of many early investors, was supposed to fund the company through 2004. For the past few months, the company has told press and analysts that it is on the brink of several deals with large incumbent carriers. So far, nothing has materialized.

    Like Caspian, Pluris Inc. had been through several rounds of funding, the last of which was a washout (see Washout Rains $53M on Pluris). Earlier this month the company closed its doors for good (see Pluris Shutdown Confirmed).

    “We are still very much in business," said Caspian spokesman Dallas Kachan. “We have the money, and we’re still engaged with customers. Things just seem to be getting pushed out as customers delay their spending.”

  • Allegro Networks, a maker of edge routing gear, also laid off about one third of its staff a couple of weeks ago. The company, headed by former Nortel Networks Corp. (NYSE/Toronto: NT) president David House, now has 100 people on staff. Last February, the company closed a second round of funding for $60 million (see Allegro Networks Nets $60M). Even though House told Light Reading in an interview two weeks ago that the company hasn’t been looking for more money, he admitted that it will eventually need a third round.

    “Right now we have the money, but we need as long of a runway as we can possibly get out of it,” he said.

    Allegro’s product is still in the final stages of development. It will be moving into beta testing in the next few weeks, according to House.

  • Movaz Networks, a startup specializing in optical networking gear for metro networks, reduced its staff by about 10 percent a couple of weeks ago. The company’s current headcount is now around 200, according to Sophia Fang, a spokeswoman for Movaz. Some sources close to the company claim the layoffs went deeper, but Fang denies this. She says that many of the people laid off included contract workers.

    “We did reduce staff, but it wasn’t anything significant,” she says. “Some of the people let go were contractors. And when their projects are done, we let them go.”

    Movaz, which already has products commercially available, closed a large round of funding in May 2002 for $60 million (see Movaz Scores $60M More). This brought its total raised to about $160 million. The latest round included funding from Telus Ventures, the venture capital arm of Telus Corp. (NYSE: TU; Toronto: T), one of the top two carriers in Canada.

  • Centerpoint, a maker of metro optical gear, also confirmed that it has laid off workers in the last couple of weeks. The company had about 100 employees after its last round of layoffs back in May of this year (see Centerpoint Lays Off and Spins Out).

    Centerpoint confirmed the layoffs but refused to give further details. Sources close to the company say there are only about 10 people working in the San Jose office now. Company officials also refused to talk directly to Light Reading and instead communicated through its public relations agency.

    "Centerpoint is continuing operations and remains optimistic about the prospects for the company,” according to a statement issued by an anonymous Centerpoint executive through Fusion Public Relations. “Although the company did recently reduce head count, Centerpoint refutes the figure Light Reading cited, and would like to clarify that the current head count is much higher than your publication has been led to believe."

    Centerpoint, which had raised about $200 million in funding since its founding in 1999, used some of that cash to buy metro optical player Zaffire, last summer (see Centerpoint Scoops Up Zaffire). At the time the merger was announced, 435 people worked for both Centerpoint and Zaffire. By May of this year, the headcount had been reduced to about a quarter of that. The company sold off its wireless business in May to Fresnel Microwave Systems in an effort to focus more of its attention on its optical business (see Centerpoint Sells Wireless Division).

But startups aren’t the only ones continuing to lay off workers. A slew of public companies also announced during their earnings calls this month that they’d be reducing staff. Some of the most notable ones were:

— Marguerite Reardon, Senior Editor, Light Reading
http://www.lightreading.com
silenceofthelambdas 12/4/2012 | 9:18:16 PM
re: New Wave of Startup Layoffs News from north of the border:
It looks like Accelight has again reduced its headcount. Rumour puts the size of the cut at more than 30 of the 89 who remained after the cut in October. Supposedly the cuts included several in upper management.
If true, the company size looks more suited for technology sell-off than any alternative IMHO.
-SOL
AAL6 12/4/2012 | 9:18:18 PM
re: New Wave of Startup Layoffs I heard some rumors that today the axe was supposed to fall on Accelight?
Any truth in this?
joe_average 12/4/2012 | 9:18:21 PM
re: New Wave of Startup Layoffs drone387 queried:

>They whacked the guy who ran the lab yesterday >with no notice.

The Mercedes man or the Volvo man?
----------------------------------------
Mercedes.

---------------------

Looooong overdue. Another example of the great leader not knowing what he was doing.
Li9ht 12/4/2012 | 9:18:34 PM
re: New Wave of Startup Layoffs
The Mercedes Man. The other Mercedes Man is taking over. (The one that always works from home.)

---------------------------------------------

Disgusting
Spaz 12/4/2012 | 9:18:36 PM
re: New Wave of Startup Layoffs chip_guy revealed:

2 interesting pieces of news :

Their main VC has shut shop and converted to a semiconductor company. The partners are writing Verilog code and running synthesis.

They received Saudi money on 2 rounds.
-----------------------------------------------

The Saudi thing isn't a surprise. I heard Mr. Goatee comment on several occasions that he'd take money from Saddam to keep the company going.

Spaz
new_light 12/4/2012 | 9:18:39 PM
re: New Wave of Startup Layoffs So is the idiot who rewrote the boot loader in C++ still around.
chip_guy 12/4/2012 | 9:18:39 PM
re: New Wave of Startup Layoffs 2 interesting pieces of news :

Their main VC has shut shop and converted to a semiconductor company. The partners are writing Verilog code and running synthesis.

They received Saudi money on 2 rounds.
Spaz 12/4/2012 | 9:18:39 PM
re: New Wave of Startup Layoffs drone387 queried:

>They whacked the guy who ran the lab yesterday >with no notice.

The Mercedes man or the Volvo man?
----------------------------------------
Mercedes.
BadaBing 12/4/2012 | 9:18:40 PM
re: New Wave of Startup Layoffs The Mercedes Man. The other Mercedes Man is taking over. (The one that always works from home.)
photon_mon 12/4/2012 | 9:18:41 PM
re: New Wave of Startup Layoffs Spaz, thanks for the kind words. Glad to read that
you're hanging in there.

Yeah, what some folks quickly forget is just how vibrant and alluring the telecomm market was. Few analysts apparently saw the end coming (we now realize that they really don't know any more than we do). Heck, I know a guy who bought Sycamore in the low $100's. Seemed insane to me at the time, even though - again - the market was still healthy at that point.

It appeared that almost everybody gave into greed to some degree - at some point. The smart ones didn't risk more than they could afford to lose. $70K to you may not be as big a chunk of the family fortune as $70K to me (or vice-versa).

It all boils down to one's comfort level, and how much "play money" they have to gamble with. And that's the key - options are a form of legalized gambling. Easy to forget, but true. Now, if someone had plopped down his/her entire "nest-egg" on options, even (and especially) if the CEO said success was "can't miss", well then - yes - that would have been stupid regardless of market conditions.

Sorry to drone on - you shouldn't have encouraged me!
drone387 12/4/2012 | 9:18:42 PM
re: New Wave of Startup Layoffs >They whacked the guy who ran the lab yesterday >with no notice.

The Mercedes man or the Volvo man?
Spaz 12/4/2012 | 9:18:43 PM
re: New Wave of Startup Layoffs photon_mon made many intelligent points, but specifically:

So congrats, Spaz, the word is out. Count me among the cynics, and add Maple to the long list of startups without substance. But in all fairness there will be a time for YOU to let go and move on. Expensive lesson learned. And of course you have every right to vent (in fact, aside from the knowledge that I gain, getting the dirt on telecriminals is a big reason why I tune in each day).
-----------------------------------------------
PM,

Excellent post from an objective observer! I think you've got things about right. Just for clarification, don't count me in the number of people bitching about lost option money. I don't think I ever have bitched. I knew that there were no guarantees going in. In fact, I knew there was a pretty good chance that Maple wouldn't make it, but that would have been OK because at least I would be in an exciting, growing industry. Oops! Didn't see that bursting bubble coming at the time. Still, I'm grown up enough to know that I was caught up in the hype and accept how things worked out. I'm fine with it, really. I enjoy having my life back and Maple doesn't keep me awake at night anymore. I just feel bad for the ones left behind, or laid off without warning. Maple's still doing it. They whacked the guy who ran the lab yesterday with no notice. Nobody's safe, except the Princess.

Spaz
photon_mon 12/4/2012 | 9:18:45 PM
re: New Wave of Startup Layoffs Normally I try to avoid jumping into "personality conflicts". But forgive me, I couldn't resist.

Light, please consider lightening up (sorry for the bad pun) on Spaz. It's very painful to piss away good money on worthless options, especially when it appears the company that excreted them is badly run (been there). And based upon the posts, and not just the ones from Spaz, it does look like there's trouble in syrup-city.

My interest was piqued, so I checked out Maple's website today for the first time (so no, I'm not a former employee, nor am I with a competitor).
Talk about lame. At least TRY to impress me into handing them my money for laundering and safe keeping.

I'm familiar with the "stealth mode" concept (remember THAT illustrious term from the near past?), but Maple appears to be taking undue advantage. Makes me think that I should jump into the market with a website and one paragraph of text. Heck, I even have PowerPoint capability, so I may just might have a leg up on them marketing-wise. Look out Maple, and make room for my new company on your market-share pie chart! Uh, when you get one ...

A scam (as others have hinted)? Time will tell.

So congrats, Spaz, the word is out. Count me among the cynics, and add Maple to the long list of startups without substance. But in all fairness there will be a time for YOU to let go and move on. Expensive lesson learned. And of course you have every right to vent (in fact, aside from the knowledge that I gain, getting the dirt on telecriminals is a big reason why I tune in each day).

Thank God we don't live in Russia (options at the barrel of a gun - no thank you!).

Most of us now realize that it is far better to be screwed by Uncle Sam later on - at least in that scenario you still wind up with X more dollars in your pocket than you started out with.
Spaz 12/4/2012 | 9:18:49 PM
re: New Wave of Startup Layoffs Light goaded:

Spaz,
Good to know that you have found a job. Does the mgmt of your new company know about your "love and hate" relationship with Maple? Are you going to start a new thread for your current company if they realize you "potential?"

Also, I got reminded of an old saying "When elephants walk, dogs bark!"

-light
--------------------------------------
Not much love, mostly hate with Maple. You know, if these new guys are the same type of company (no possible way), I might start a thread. When elephants walk, I usually watch where I step if I'm following them. Arf arf.

Spaz
Light 12/4/2012 | 9:18:52 PM
re: New Wave of Startup Layoffs Spaz,
Good to know that you have found a job. Does the mgmt of your new company know about your "love and hate" relationship with Maple? Are you going to start a new thread for your current company if they realize you "potential?"

Also, I got reminded of an old saying "When elephants walk, dogs bark!"

-light
Spaz 12/4/2012 | 9:18:54 PM
re: New Wave of Startup Layoffs MrCasual replied:

Yep, it's for mister.

--------------------------------
Oh well. I'm obviously not as clever as I thought. The guy I thought you were saw my post and let me know you weren't him. Maybe we'll all meet for a reunion lunch someday and exchange LR handles.

Spaz
Spaz 12/4/2012 | 9:18:54 PM
re: New Wave of Startup Layoffs Light ranted:

You Bozos,

I was also a Maple employee. I never spent a penny to buy Maple Stocks. I never trusted them in the first place. BTW, how did you manage to get 70K worth of stocks? From the frequency of you postings,looks like you haven't got a job yet. I agree that employee like you did let Maple down.
Now shut up and stop washing your dirty laundry in public.

Learn from you past experience and don't blame others for everything that went wrong with you.

light.
----------------------------------------------
Light-in-the-Loafers,

For an ex-Maple guy you sure sound like you're sticking up for the old team. Weren't you the person you jumped on my case a couple of weeks ago in a post and then never answered my request for clarification of what you were rambling on about? Let's see, what disagreable folks did I used to work with?

I assure you that I'M working. This is just kind of a hobby for me. I just like to get the word out so that some unsuspecting engineer or vendor doesn't lose their a** dealing with these guys. It's our right to air our laundry. It's yours to not read it. I suggest you stop reading posts about Maple. I doubt that any of them are going to be very complimentary, and it looks like that will upset you.

SpazBozo
TheChief 12/4/2012 | 9:18:56 PM
re: New Wave of Startup Layoffs Isn't it easy to attack others when you hide behind an anonymous name? These boards are meant grown-up discussion not unwarranted personal attacks.
==================================================

Bozo seems to fit someone that would spend $70K on startup stock! Can you think of a better name?
mrcasual 12/4/2012 | 9:18:57 PM
re: New Wave of Startup Layoffs Yep, it's for mister.
Light 12/4/2012 | 9:18:57 PM
re: New Wave of Startup Layoffs You Bozos,

I was also a Maple employee. I never spent a penny to buy Maple Stocks. I never trusted them in the first place. BTW, how did you manage to get 70K worth of stocks? From the frequency of you postings,looks like you haven't got a job yet. I agree that employee like you did let Maple down.
Now shut up and stop washing your dirty laundry in public.

Learn from you past experience and don't blame others for everything that went wrong with you.

light.
drone387 12/4/2012 | 9:18:57 PM
re: New Wave of Startup Layoffs >Bill did come up with a couple of doozies.

Bill set up expectations that he could deliver. When he didn't, it's just natural that he was going to take the fall. He should have stuck with the original line that if engineering delivers, he would deliver. That would have kept the pressure (and blame) on The Dear Leader and The Great Leader. Unfortunately for Bill, he lost that message.

>"was A Tool any better"?
I think of Atul as the cleanup guy sent in to finish out the game after it has already been decided. He's expected to do his best but no one is expecting anything great.

Maple was started too late (at the bubble peak) to be the homerun the founders wanted. Maple was also too badly managed to survive the bust and be a modest success. Maple was last hanging their hopes on BT. Did they ever deliver a beta (working or not)?
joe_average 12/4/2012 | 9:18:57 PM
re: New Wave of Startup Layoffs Light venomously wrote:

You Bozos,

I was also a Maple employee. I never spent a penny to buy Maple Stocks. I never trusted them in the first place. BTW, how did you manage to get 70K worth of stocks? From the frequency of you postings,looks like you haven't got a job yet. I agree that employee like you did let Maple down.
Now shut up and stop washing your dirty laundry in public.

Learn from you past experience and don't blame others for everything that went wrong with you.

light.

---------------------------------------------

Isn't it easy to attack others when you hide behind an anonymous name? These boards are meant grown-up discussion not unwarranted personal attacks.
john_jacob3 12/4/2012 | 9:18:57 PM
re: New Wave of Startup Layoffs
Maple employees do not worry. The VCs will loose all their money. No customer or potential acquirer will ever touch a company with such disrepute. Further anything associated with the Tier 10 VC is blacklisted these days. All of you who feel cheated will have their last laugh. Not to worry, this great country does not let cheats flourish for long. The market economy catches up quickly and gets rid of all wrongs. I am a great believer of this system. Furthermore the legal system in this country protects the common man. VCs and greedy executives cannot get away with robbery.

BTW, the sexual harrassment lawsuit is for real. Lots of hanky panky went on in Maple. It was a fallout of what went on behind the closed door sessions and some business trips.
Spaz 12/4/2012 | 9:18:58 PM
re: New Wave of Startup Layoffs drone387 wrote:

"That's certainly an interesting insight. The way the former CEO was treated, I'm not surprised that he wanted to exact a level of retribution. It was really shameful to truck him out in front of the entire company and announce that he is being pushed aside. My hat's off to him for having the dignity to stand there and take it and then resign right after. Good luck to you Bill!"

But what do you expect after announcing at a company all hands meeting a few months before that "I can call up Oppenheimer at any time and get $100M!"?
------------------------------------------

Bill did come up with a couple of doozies. That was one. But it was probably true at the time he made the statement. The other one I remember was the instructions to spend money if it saved us time, to the tune of $25M/week. In other words, if you spent less than $25M but got us to IPO a week earlier, then we were money ahead because our valuation was growing at that rate. To be fair, you have to remember that Bill was not any worse than a lot of other CEOs caught up in the bubble hype. What you really have to ask yourself is, "was A Tool any better"? At least Bill tried to lead the company. He didn't just hide in his office and ignore employee questions. He also actually HAD an all-hands meeting when he called one.

Spaz
Spaz 12/4/2012 | 9:18:59 PM
re: New Wave of Startup Layoffs chip_guy,

Is there there any significance to your choice of LR handle (other than your ocupation)? If so, I think we know each other fairly well.

We should probably take these discussions over to the reader talk thread that I set up yesterday, the Maple Optical Clothesline. Contrary to what Scott Sewall said, there does seem to be a need for some kind of outlet for us Maplers

Spaz
Spaz 12/4/2012 | 9:18:59 PM
re: New Wave of Startup Layoffs MrCasual wrote:

No, I'm not living in Utopia.

What did they say to you to make you buy your shares?

A: "Buy your shares, they are only going to go up!!!"

B: "Buy your shares or we're going to fire you."

If it was A then it's your fault. If it was B then sue
there asses.

I haven't followed the Enron case that closely but A
and B still apply to a certain degree.

When I used to work for Nortel the company line was
that Nortel shares would continue to rocket to infinity
and everyone would be a millionaire. I left a few months
before it hit the peak and sold almost all of my shares.
____________________________________
MRC,

Does the Mr in your handle stand for "mister" or something else. Just a quess.

Spaz
Spaz 12/4/2012 | 9:19:00 PM
re: New Wave of Startup Layoffs MrCasual wrote:

Sorry, but I don't understand how a company can "force"
someone to buy their options.

The can try to convince you to buy them by lying, etc.
but I can't see how they can force you.

Just curious about the details.
_______________________________________

It's not like they put guns to our heads, so "forced" is perhaps too strong of a word, but there was certainly pressure applied on us to exercise early. Large valuation numbers were throw around and the impact of AMT was shown to be a big problem if you didn't. The founders made it sound like they were looking out after our interests and I believed them at the time. In retrospect, I'm not sure what the motivation was. It's hard to believe that they really wanted our money that bad to go through that much trouble. But then again, I've been amazed at how greedy these guys really are. Money is the one thing that really drives the most powerful founder still left. You insiders will know who that is.

Spaz
Spaz 12/4/2012 | 9:19:00 PM
re: New Wave of Startup Layoffs chip_guy wrote:

They forced me to buy their toilet paper options at a high price. I had to shell out $70K to buy them. Then they repriced. They refused to pay me back. I virtually begged them. This is what they are doing depriving the poor guy to pay off their misdeeds. What a bunch of cheats. Spaz, should I sue them.

__________________________________________

That's kind of up to you. Henry_Class sure thinks you should, and it would be the only way you'd be getting any money out of them at this point. It don't think they're in much of a position to defend themselves. From what I hear (from sources that should know) they have stiffed their legal team to the tune of a couple hundred grand. It's kind of hard to get people to represent you when you do things like that. Maybe the Princess will be handling it.

Spaz
horse of a different color 12/4/2012 | 9:19:01 PM
re: New Wave of Startup Layoffs Bozon,

It also has to do with captial gains. By purchasing the stock at an early date, you will not have to deal with short-term capital gains if you own them for 1 year or longer. A company I worked for did this, by "loaning" the employee the money for the purchase with a "no interest loan". Then I bought my vested options when I left. Then they filed for Bankruptcy. Another sad ending to a Silicon Valley tale.

Horse
Spaz 12/4/2012 | 9:19:01 PM
re: New Wave of Startup Layoffs joe_average wrote:

OK Spaz, I give up. How do we get to the reader message board area?

The idea is great - there is nothing like a good cathardic purging to release all the bad internal energy!

Good luck to all current hardworking Maple employees.

_________________________________________________

If you follow the link on the LR home page to message boards, then Current Reader Talk, you'll see the Maple Optical Clothesline thread. Or you can follow this link:

http://www.lightreading.com/bo...

Spaz
mrcasual 12/4/2012 | 9:19:01 PM
re: New Wave of Startup Layoffs IF you worked for Nortel then you should know about John Roths view that each and every executive should own at least a $100K worth of company stock (not to be confused with their option grants).

Yes, but that was relatively easy for them to do. All
they had to do was exercise a few of those options and
bingo, they own $100K+.

That is a somewhat different scenario than what is being
alluded to in the Maple situation. It sounds like chip_guy's
situation was something different.
Nuetrino 12/4/2012 | 9:19:07 PM
re: New Wave of Startup Layoffs Mrcas...

IF you worked for Nortel then you should know about John Roths view that each and every executive should own at least a $100K worth of company stock (not to be confused with their option grants). Hmmmm, more than implied that career path security had something to do with investing in the company--- or else!
walter_100 12/4/2012 | 9:19:09 PM
re: New Wave of Startup Layoffs "I think that I heard about the financial and sexual harrassement and that it was a single individual behind both. My take is that that one was not Maple's fault. Maybe there's something that I don't know. Anyone have more dirt?"

Who is this? Care to provide the initials of the person concerned?
drone387 12/4/2012 | 9:19:09 PM
re: New Wave of Startup Layoffs "That's certainly an interesting insight. The way the former CEO was treated, I'm not surprised that he wanted to exact a level of retribution. It was really shameful to truck him out in front of the entire company and announce that he is being pushed aside. My hat's off to him for having the dignity to stand there and take it and then resign right after. Good luck to you Bill!"

But what do you expect after announcing at a company all hands meeting a few months before that "I can call up Oppenheimer at any time and get $100M!"?
joe_average 12/4/2012 | 9:19:09 PM
re: New Wave of Startup Layoffs HC wrote:

"I heard they had lots of lawsuits from previous employees, executives & suppliers. They have shelled out few million dollars to settle them. The lawsuits are also strange in nature from sexual harrassment to financial cheating. What a startup, beats Enron handsdown. Cheated employees this is your opportunity, go after them, they will pay you off. Till they have some money. They paid off the ex-CEOs house after he threatened a lawsuit."

That's certainly an interesting insight. The way the former CEO was treated, I'm not surprised that he wanted to exact a level of retribution. It was really shameful to truck him out in front of the entire company and announce that he is being pushed aside. My hat's off to him for having the dignity to stand there and take it and then resign right after. Good luck to you Bill!

The tragedy was that he was pushed aside as the board didn't have confidence in him getting another round of financing. The new CEO was such an "improvement" that he got a whole 4 months of burn-rate funding after eight months of trying (Note: Sarcasm was in effect).

I think that I heard about the financial and sexual harrassement and that it was a single individual behind both. My take is that that one was not Maple's fault. Maybe there's something that I don't know. Anyone have more dirt?
bozon 12/4/2012 | 9:19:13 PM
re: New Wave of Startup Layoffs What happened to chip_guy is probably due to early exercise of options scheme that works like this: to get around a California tax law regarding option relating profits some firms offered employees the option of sending giving the company a check for the value of the options when they were hired. As such the options are considered to be exercised at the price they are issued and, in the event of the price going up, the person is off the tax hook until the shares are actually sold. Unfortunately, since the company already has your money, you cannot decide if you really want to vest the options or not, its at their latitude. Since Maple was in a cash crunch and this was easy money for them, they gave chip_guy the expensive paper toilet rather than his money back.


mrcasual 12/4/2012 | 9:19:15 PM
re: New Wave of Startup Layoffs No, I'm not living in Utopia.

What did they say to you to make you buy your shares?

A: "Buy your shares, they are only going to go up!!!"

B: "Buy your shares or we're going to fire you."

If it was A then it's your fault. If it was B then sue
there asses.

I haven't followed the Enron case that closely but A
and B still apply to a certain degree.

When I used to work for Nortel the company line was
that Nortel shares would continue to rocket to infinity
and everyone would be a millionaire. I left a few months
before it hit the peak and sold almost all of my shares.
chip_guy 12/4/2012 | 9:19:17 PM
re: New Wave of Startup Layoffs MR,
You must be living in Utopia. How did Enron force their employees to buy Enron shares for their 401K. Big investigations going on.

Get real and cautious otherwise you will loose your shirt too. I am surprised that there are so many naive people after all the exposed problems with companies.
mrcasual 12/4/2012 | 9:19:18 PM
re: New Wave of Startup Layoffs They forced me to buy their toilet paper options at a high price. I had to shell out $70K to buy them. Then they repriced. They refused to pay me back. I virtually begged them. This is what they are doing depriving the poor guy to pay off their misdeeds. What a bunch of cheats. Spaz, should I sue them.

Sorry, but I don't understand how a company can "force"
someone to buy their options.

The can try to convince you to buy them by lying, etc.
but I can't see how they can force you.

Just curious about the details.
chip_guy 12/4/2012 | 9:19:19 PM
re: New Wave of Startup Layoffs
They forced me to buy their toilet paper options at a high price. I had to shell out $70K to buy them. Then they repriced. They refused to pay me back. I virtually begged them. This is what they are doing depriving the poor guy to pay off their misdeeds. What a bunch of cheats. Spaz, should I sue them.
henry_class 12/4/2012 | 9:19:22 PM
re: New Wave of Startup Layoffs
I heard they had lots of lawsuits from previous employees, executives & suppliers. They have shelled out few million dollars to settle them. The lawsuits are also strange in nature from sexual harrassment to financial cheating. What a startup, beats Enron handsdown. Cheated employees this is your opportunity, go after them, they will pay you off. Till they have some money. They paid off the ex-CEOs house after he threatened a lawsuit.
joe_average 12/4/2012 | 9:19:23 PM
re: New Wave of Startup Layoffs OK Spaz, I give up. How do we get to the reader message board area?

The idea is great - there is nothing like a good cathardic purging to release all the bad internal energy!

Good luck to all current hardworking Maple employees.
Spaz 12/4/2012 | 9:19:24 PM
re: New Wave of Startup Layoffs I just wanted to let all you interested Maple folks (because nobody else cares really) that I have created a new thread in the reader message board area, The Maple Optical Clothesline. Maybe it can be your one-stop shopping for all of the dirt on Maple. It will actually help productivity at Maple (such as it is) because now everyone won't have to search all over the LR boards for Maple posts. Here's your chance to get out those pent-up rages. Try it. It feels good. See you there!

Spaz
opticalc 12/4/2012 | 9:43:21 PM
re: New Wave of Startup Layoffs Sure, they would shine !! with Jerks like "Pee, the CON" who sucked from
Starcom->Coree->Firstwaveion-> ??
lastofthebohicans 12/4/2012 | 9:47:47 PM
re: New Wave of Startup Layoffs Having a resume reeking with telecom-related
prowess and experience is a handicap now.
My friends out of work are telling me the
term 'telecom loser' is being bandied about by
non-telecom hiring managers, as they get stacks
of resumes from telecom workers. Every non-telecom company you go to treats their place as "where it's at" for technology, and if you aren't completely in their industry, they treat
you like your body of work is irrelevant

I hope not to join the ranks of the unemployed (again) anytime soon, but my resume reeks of telecom to the point where incense and garlic won't alleviate the stench. If I don't start diversifying my experience, it will ultimately
be my own fault for not managing my career
(which no one can do for you but yourself).

Telecom is a tough and demanding field, and many
different disciplines and concepts are used
and employed; moving to other industries
is a tough sell, but emphasize your C++/OO design
experience rather than your embedded switch
expertise, for example. Leverage your problem
solving skills, design of algorithms, or
database work when attempting to get into a field like 'bioinformatics', for example.

Good luck to all of us; the last two years
has been, more than anything, an education
in business: the good, the bad, and the ugly





papabear 12/4/2012 | 9:51:36 PM
re: New Wave of Startup Layoffs Fujitsu is laying off 17% this week. A lot will be in upper ranks.

Alcatel will also be laying off some. They are being given the option of taking the layoff or going to the company buying some of their manufacturing. Rumor Sanmina or Celestica.
the_lord 12/4/2012 | 9:52:45 PM
re: New Wave of Startup Layoffs Cyneta Networks got hit with 20%.... Lab trials in Europe went bad.... Oui ... Oui...
kp9988 12/4/2012 | 9:54:46 PM
re: New Wave of Startup Layoffs This one is even worse, totally closed

http://65.216.216.200/r/default.asp?R=000004ada000089d9&auctionID=1453&refer
ldarneille 12/4/2012 | 9:55:30 PM
re: New Wave of Startup Layoffs I know there are many layoffs right now and that is very scary. As a result of this, there are some excellent people that are on the streets and looking for work.
There are however, some start ups that are poised to make it through this period. I am currently working with a start up in Silicon Valley, recently got series A funding that is looking for a product manager. This person needs to be pretty technical with experience in data storage software product management. I would like to see a candidate with a minimum of 5 years of experience. Somebody that started their career as an engineer and then moved into product management would be perfect. This is almost an entirely inbound position, thus the need for good technical background.

If you know of anybody or if you are interested yourself. Please email me your resume at [email protected]

Thank you!
rono 12/4/2012 | 9:58:09 PM
re: New Wave of Startup Layoffs I am not at all surprised at our sister location. "The director" has messed up and the VP pays lip service to it to forward his own political agenda. Had some outside expert looked at the data plane design he would be aghast at such choices in design.
Meteorman there is nothing you can do. It is high time the board members takes remedial action.
pipesoflight 12/4/2012 | 9:58:21 PM
re: New Wave of Startup Layoffs Heard that White Rock Networks was cutting people with a possible bias. Cell Works was a failure and WRN was keeping ex-ADC folks over people people that helped form WRN. Does the VCs know this?
theanswer 12/4/2012 | 9:58:22 PM
re: New Wave of Startup Layoffs Same thing at white rock networks. Cut to save costs. Bring back less experienced or ADC folks.
manoflalambda 12/4/2012 | 9:58:31 PM
re: New Wave of Startup Layoffs meteorman:
The bunch of croonies (the director level and up
including VP of engineering) have done a wonderful
job of fooling the raza foundries.The "buddy
system" is institutionalized here after the
arrival of new VP of engineering.


The Tachion (http://www.lightreading.com/bo...
board could certainly reflect on --
http://www.firstwaveion.com/bi...
aka, iirc, Quaker Oats Man... :)

Salute,
Manoflalambda
meteorman 12/4/2012 | 9:58:31 PM
re: New Wave of Startup Layoffs The bunch of croonies (the director level and up
including VP of engineering) have done a wonderful
job of fooling the raza foundries. The "buddy
system" is institutionalized here after the
arrival of new VP of engineering. The challenge for the earlier engineers who have produced tangible product working admirably at customer site is not money but teamwork and cooperation.
Ego and crab bucket mentality are the exemplary
qualities these croonies have. What a sad commentary this leadership make at firstwave!

Honorable Mr Atiq Raza your sharp vision cannot see this?
What will derail the firstwave team?
The putrid snakes with their own political agendas will definitely kill the teamwork. The split-level consciousness should not make it to the firstwave.
It is important for an organization's Chief Executive to get a report on the psychological health of the firm.How do people in the team feel? Are they stable? Confident? Secure? Comfortable?
Alas, sycophancy and favoritism is showing its glittering teeths at firstwave
Good luck to u all. U there watch out for the firstwave meteor rain!!!
texastea 12/4/2012 | 9:58:55 PM
re: New Wave of Startup Layoffs http://www.pressdemocrat.com/b...
jamesbond 12/4/2012 | 9:58:56 PM
re: New Wave of Startup Layoffs A friend of mine, who worked as test engineer, mentioned that over 60% of engineers were laidoff this week in his group. The cut was deep.
-------------------------------------

How much of development (sw, hardware) groups
were let go?

Ask your friend if they indeed have 200 customers.

I would have seen a barrage of posts on LR if
a lot of engineers had been let go. Something
isn't adding up.
kp9988 12/4/2012 | 9:58:58 PM
re: New Wave of Startup Layoffs A friend of mine, who worked as test engineer, mentioned that over 60% of engineers were laidoff this week in his group. The cut was deep.
optigrabber 12/4/2012 | 9:59:03 PM
re: New Wave of Startup Layoffs consider these two anagrams of "networking industry"

destiny in grunt work
risky downturn tinge
calixdude2002 12/4/2012 | 9:59:05 PM
re: New Wave of Startup Layoffs It is sad to note what has been happening at Calix. Mickey Mouse Hatfield is only concerned about not loosing control, fearing what happened to him at previous companies. Therefore, creative financing has led them to where they are today.

Along with Mickey, Tom (no Jerry) and Goofey, a rich stable of cartoon characters adept at marketing and selling favors for money, believe they can apply similar strategies to marketing and selling communication systems to service providers.

So embarassing and such a shame.

CD2K
Lite_Rider 12/4/2012 | 9:59:29 PM
re: New Wave of Startup Layoffs A wise man once told me:
There is only a slight difference between Networking and NOTworking.



opticalguy_sfo 12/4/2012 | 9:59:30 PM
re: New Wave of Startup Layoffs does anyone have an information on All optical networks in San Diego?

What are the prospects u think?

chow
deepciscothroat 12/4/2012 | 9:59:30 PM
re: New Wave of Startup Layoffs Wiley
roger your last point. Real issue is that no one really qualifies these management teams, as most of the VCs are not qualified to understand either the business or management team. IMHO most of the start-ups work on the 'star vs. production' system. VCs back a 'name' with a great 'concept' and make some 'backdoor references' rather than research a business plan. Spirals downs from there. Your thoughts?

dct
lambdaman2 12/4/2012 | 9:59:33 PM
re: New Wave of Startup Layoffs I know from an inside source firstwave is not going under but quite the contrary. They have had thier equipment up and running in a very pleased customer's network for almost a year without any downtime and no major hiccups. Thier bays are rock solid. To the "science project" poster and "no money to redo the webpage" poster: Please restrain yourselves from misinforming your peers and making a$$es of yourselves. Firstwave may be the only bright spot on a very bleak horizon.
rif 12/4/2012 | 9:59:37 PM
re: New Wave of Startup Layoffs Unpublicized? Sierra Monolithics, the SiGe people, heard they had a layoff sometime in June.
lkuav8r 12/4/2012 | 9:59:38 PM
re: New Wave of Startup Layoffs layoff networks
wilecoyote 12/4/2012 | 9:59:43 PM
re: New Wave of Startup Layoffs That's who I was referring to...I don't even know any of the rank and file. The whole basis for the company was ridiculous. That anyone gave them money is unforgiveable. Then they squandered it working on a science project, half assed, that would never work or be purchased.

Still they made LR's top ten list. Wow! What an exclusive community.
deepciscothroat 12/4/2012 | 9:59:44 PM
re: New Wave of Startup Layoffs Wiley
think you might be a little tough on the rank and file and forgetting the founders/vcs (just like senior management at, ahem, bigger companies) that don't take the fall. Real lives and real people get hurt. Senior bozos should be strung up by their cohones

dct
deepciscothroat 12/4/2012 | 9:59:44 PM
re: New Wave of Startup Layoffs Wiley
think you might be a little tough on the rank and file and forgetting the founders/vcs (just like senior management at, ahem, bigger companies) that don't take the fall. Real lives and real people get hurt. Senior bozos should be strung up by their cohones

dct
lightfantastic 12/4/2012 | 9:59:44 PM
re: New Wave of Startup Layoffs Rather than "Who has't had layoffs", the question should be "Who hasn't had PUBLICIZED layoffs."

Everyone has been slimming the ranks - sometimes this works for the best, other times very talented people are let go.

Recently, I started seeing that while many of my director-level contacts are being let go, companies are keeping jr staff, in order to cut costs and save on salaries, etc.

-l
wilecoyote 12/4/2012 | 9:59:47 PM
re: New Wave of Startup Layoffs Probably can't afford to pay the webmaster to change the website. Jasmine was dead long ago.

Good riddance too. Sorry for the bluntness but the place was populated by idiots.
jamesbond 12/4/2012 | 9:59:47 PM
re: New Wave of Startup Layoffs Oh really. Any reason why there website is populated with jobs ?

------------

Same reason why I saw employment ads for
Jasmine Networks at a cinema hall few months
ago.
abaylis 12/4/2012 | 9:59:48 PM
re: New Wave of Startup Layoffs Oh really. Any reason why there website is populated with jobs ?
highend 12/4/2012 | 9:59:48 PM
re: New Wave of Startup Layoffs BTW: Just heard today about FirstWave going under?
theanswer 12/4/2012 | 9:59:49 PM
re: New Wave of Startup Layoffs I also notice at one company that persons with families were cut along with others only to see single people called back within weeks. The layoff or call back didn't seem to have anything to do with skill level.
abaylis 12/4/2012 | 9:59:49 PM
re: New Wave of Startup Layoffs Obviously our economy affects everything regardless of skilled workers with family. Corporation are forced to reduce headcount to stay alive.....


-AB
Titanic Optics 12/4/2012 | 9:59:49 PM
re: New Wave of Startup Layoffs Can't reach this company. Anybody know anything?
abaylis 12/4/2012 | 9:59:50 PM
re: New Wave of Startup Layoffs It's too much work and I am not ready for that. Now that I am single travelling and relocating is ok. If an opportunity presents itself I would leave yesterday.


Allen Baylis
[email protected]
abaylis 12/4/2012 | 9:59:51 PM
re: New Wave of Startup Layoffs Don't know you but it's too much work. Now that Iam single it's ok travel and to relocate and work for the big boys.....


Allen Baylis
Mad Max 12/4/2012 | 9:59:52 PM
re: New Wave of Startup Layoffs Navmot,

Send me an email [email protected]

MM
jimbo59 12/4/2012 | 9:59:52 PM
re: New Wave of Startup Layoffs "Word is one of their key execs left soon after the last layoff in May. How incredibly depressing."

...hmmm, from viewing their webpage, looks to be that Lucent Fellow (Dutch guy or something like that) who joined them a while back...
Richard Hatch 12/4/2012 | 9:59:53 PM
re: New Wave of Startup Layoffs The only way you could have dodged the WCOM development bullet is to have had prior experience with them. WCOM has several labs and usually requested time-consuming customization to its proprietary methods. If you're a startup, it's tantalizing to have a big IXC like WCOM flirting with you, but often the costs outweigh the benefits...sometimes you get lucky, but Caveat Vendor. This is the responsibility of the management & VCs to understand, and usually to temper the enthusiasm of any particular sales rep.
abaylis 12/4/2012 | 9:59:53 PM
re: New Wave of Startup Layoffs It's depressing but you can't rule it out. Not all startups make it. Anyway I know the timing is terriable but I am looking to relocate....
diag_eng 12/4/2012 | 9:59:54 PM
re: New Wave of Startup Layoffs >> How incredibly depressing.

Yes, it is. I knew several people at QB. It was the hottest company around for a spell.

My, how things have changed. A friend of mine worked in a high-level position at QB. Somtime in late '99, at lunch, we were discussing QB's eventual IPO and I asked him if there was a potential to be "taken out" before the IPO. He said the offer would have to be $4B+ for them to even consider it. At the time it didn't seem so far-fetched. Now, $0.00-$0.07 per share is more likely.


signmeup 12/4/2012 | 9:59:55 PM
re: New Wave of Startup Layoffs Marguerite,

I think it would be interesting to also hear from those startups that had committed substantial time and resources in trying to get WCOM to purchase their equipment, not just those that already had a contract. I personally know of several companies that spent several million dollars in development efforts and lab trials in order to convince WCOM to purchase their equipment.

It is a shame because money is so difficult to come by now if you are a startup, so if your company spent that money trying to satisfy a requirement that only WCOM had, you are pretty much out of luck.

Just a thought...
Marguerite Reardon 12/4/2012 | 9:59:55 PM
re: New Wave of Startup Layoffs I noticed that someone had put together a short list of companies that haven't had layoffs. I'd like to continue this list and check up on these companies. So please send me any names of optical networking companies that you know that have NOT had any layoffs yet. I'll include it in the next startup layoff update. You can send these to me directly at [email protected]

Thanks!
Marguerite Reardon 12/4/2012 | 9:59:56 PM
re: New Wave of Startup Layoffs I'm trying to compile a list of companies that have been directly impacted by the WCOM bankruptcy. Companies that have either been forced to shut down or have had layoffs because WCOM owes them money or is no longer a customer for their products. You can contact me directly at [email protected]
horse of a different color 12/4/2012 | 9:59:57 PM
re: New Wave of Startup Layoffs Mr Fantastic...

You have obviously confused the term "deliver" with "sell". Just because a company makes a box doesn't mean there is anyone there to buy it. Especially these days, when money is oh-so-tight and the last thing a large (read: still spending) company is going to do is spend their limited captital on an untested product from a tiny start-up that probably has limited to no support staff (with the possible exception of engineering) and certainly no marketing people (endangered species). And forget about anything like OSMINE or TURKS.

The only thing these small funding rounds will provide for is to extend the runway long enough for the untimate market recovery with a limited staff (good luck), or enough time to find another job.

It's not so much about extending the runway anymore, but prolonging the pain. IMHO

horse
lightfantastic 12/4/2012 | 9:59:58 PM
re: New Wave of Startup Layoffs Is this "chew-em-up and spit-um-out", or just a natural evolution of a company? You can't bring a product to market anymore with a staff of 85 per cent engineers, and companies cannot afford to staff at 2000 levels. So yes, when engineering has to get hit, it is unfortunate, but when admin was being cut 9 months ago, it wasn't deemed a tragedy, was it??

-l
sigint 12/4/2012 | 9:59:59 PM
re: New Wave of Startup Layoffs Any news of Atoga?
excalix 12/4/2012 | 10:00:01 PM
re: New Wave of Startup Layoffs Typical "Chew-em-up and spit-um out" outcome.
Product is done, engineering gets the axe.
Such is life in the new millennium :(
deadwood 12/4/2012 | 10:00:03 PM
re: New Wave of Startup Layoffs VC's don't get Options, they buy preferred stock, they have already put up the cash.
-------------
That is not necessarily true. VC firm puts up the money and gets preferred but the VC individual who makes the deal asks for a often gets option just like an employee. I know it happend with us and then when the company was acquired in a extremely short period and the VC had barely attended one meeting and yet the VC individual asked for most of his option vested in several day when refused he started bad mouthing us.
theanswer 12/4/2012 | 10:00:04 PM
re: New Wave of Startup Layoffs Since I am fluent in both German and French I had to go back and check my previous post to make sure I didn't use those languages in my posts.
Points
I haven't past my exercise date(s) since termination. (wash out round soon)
The founders are still there and whether a wash out occurs or not, they are still in the game.
I am making the point that options should not expire based on termination. Unless, you commit a crime or serious violation to cause dismisal.
Being dismissed through no fault of my own, as my papers state, shouldn't disqualify my options or cause them to be limited from exercise at a future date. Yes I understand the paper work I signed. But that doesn't mean I can't look to congress or or legal means to improve on these standard practices.
Wash out rounds should apply to all who have earned options and re-issue of stock.
I know this is not the case under current contracts or business models. I am looking for ways that hard working employees still have some hope of achieving a reward for service (not riches and early retirement).
sonet49er 12/4/2012 | 10:00:06 PM
re: New Wave of Startup Layoffs VC's don't get Options, they buy preferred stock, they have already put up the cash.

Don't know the deal with your founders but since they got in with the Angel money their strike price was certainly low and were probably exercised to avoid AMT and get long term capital gains.

What is the exact nature of ethical issue?

geof hollingsworth 12/4/2012 | 10:00:06 PM
re: New Wave of Startup Layoffs Perhaps the responses would be more coherent if the point (s?) were more clear. I am guessing that your company's plan requires that employees exercise vested options within a certain period of time following the separation date, and you are wrestling with whether to risk the money required to exercize. You wish you had more time to make that decision, and I am sympathetic, as I had to walk away from several option tranches last year. But I don't follow the ethical issue you mention. This is a standard provision in all option plans I have been party to, clearly spelled out in the option documents which I(and presumably you) had to sign to be part of the plan. And the plans aren't THAT long (4-5 pages). Was this provision hidden from you or misrepresented in some way? If not, I don't understand why you feel it isn't "right".

Can you enlighten us on how the founders and VC's are being treated differently from you? Did they have options which were also subject to forfeiture but which they got ammended to be able to defer the decision? If so, I agree, you have been ethically mistreated whether it was legal or not. But if you are angry just because your options have expired and theirs haven't, I don't see an ethical issue.
light-headed 12/4/2012 | 10:00:07 PM
re: New Wave of Startup Layoffs maple... deliver???

hahahahaha... that is a good one!

those guys will never deliver anything that is worth buying. 11-12M will just keep the boat afloat a little longer... but eventually it will sink like the rock it is.
optical_hell 12/4/2012 | 10:00:08 PM
re: New Wave of Startup Layoffs Don't forget the recognized leader in the PON market, Quantum Bridge.

Down from 325 to under 80 in 12 months. Most of engineering (maybe 30-35 left), support (a few left), QA (none left) and admin. Still a few engineers, and of course, plenty left in sales. Three rounds down, one to go.

Word is one of their key execs left soon after the last layoff in May. How incredibly depressing.
lightfantastic 12/4/2012 | 10:00:09 PM
re: New Wave of Startup Layoffs Of course, we all remember.

But I am tired of the deathwatch posted on these boards.

So, I celebrate their good news.

What I'd like to know, is that with these surviving startups, what stage are their products? When does is Maple, for example, expected to deliver?

-l
theanswer 12/4/2012 | 10:00:10 PM
re: New Wave of Startup Layoffs As usual on this thread we get incoherent responses from people that don't understand the point of a post.
I took the risk and stayed with it for 2 years before the axe fell. I contributed, learned, and was not unhappy with going to the startup.
I wasn't trying to hit it big. I joined to provide services (expertise) to help develop products. As my post stated, "I didn't join to get rich". I do believe that options should remain available to the laid off persons for the life of the company. I don't think anyone owes me a living or guaranteed reward. But options are issued and should remain an option to a person until the company dies or becomes successful. If they are successful then the risk of holding those stocks or selling them as I see fit is mine to take. I would then be responsible for my actions of selling them at a cost. But limiting the options to a time table by which I can't determine if I should buy them isn't right.
I don't blame anyone for my bad decisions.
Once a person is laid off he/she usually has no feedback about how the private company is going to perform in the future. The still employed are closer to the facts and can make better decisions about those options in the future.
I am not dissappointed I was cut. I am enjoying my time off and catching up on neglected chores and family. Job risk was never a big deal for me because skills can't be laid off, only people.
(serial startup guy too)
My concern is holding VCs and Founders to a ethical standard for options. Many or all of them are not exercising the options now because of risk, and have the option to decide at a later date what to do. All employees that are issued options should be granted the same opportunity.
Forcing laid off employees to make option decisions sooner than anyone else doesn't seem ethical or fare. Yes, life isn't fair, but that is a copout statment for those without the courage to make the playing field level for all those that took the risk for the outcome of the company.
jamesbond 12/4/2012 | 10:00:10 PM
re: New Wave of Startup Layoffs GOOD FOR MAPLE!

Maybe now everyone can stop with the deathwatch.
--------------

Nowadays getting money does not mean jack.
Remember Pluris announced 50mil 6mths before
going belly up.
lightfantastic 12/4/2012 | 10:00:11 PM
re: New Wave of Startup Layoffs GOOD FOR MAPLE!

Maybe now everyone can stop with the deathwatch.

-l
walter_100 12/4/2012 | 10:00:11 PM
re: New Wave of Startup Layoffs Maple closed 11-12 million yday
aa 12/4/2012 | 10:00:12 PM
re: New Wave of Startup Layoffs Any news on this?

Author: lrdr Number: 31
Subject: Re: Maple Optical networks Date: 7/31/2002 9:37:20 PM


I've heard that a couple of times, but they seem to be still hanging on. Zhone too. I heard Calix is laying off next week.
52608 12/4/2012 | 10:00:14 PM
re: New Wave of Startup Layoffs Layoff Meter went full scale while driving by 225 Baypointe Pkwy off Zanker, home (last bunker?) of BlueArc....5 cars counted in parking lot of block long building, lobby dark. Rang general number three times, no answer....has the BlueArc Hype that went around finally come around? Most of sales force hired last year are long gone--new Sales Vp has the look of a UPS driver who has lost his way.
sonet49er 12/4/2012 | 10:00:15 PM
re: New Wave of Startup Layoffs theanswer - "In many cases the outlook for the startups look grim and the laid off individuals are prompted by the CEO/founders not to buy options due to uncertainty"

AND

"Should startups (founders/VCs) be held to a standard much like the recently arrested. The persons laid off can be duped out of their options and possible retirement $$$ just like the Enron/Golbal/WCOM/Adelphia/... investors and employees were. Persons working for options see these as an investment in their future. I didn't expect to get rich but at least have some reward for 2 years of hard work for developing the company's products as the VCs and founders did."

Enron and Worldcom were advising their employees to BUY so they wouldn't miss the upside to prop up their stock. If founder of your company is having layoffs in this enviroment then there is certainly significant risk to your investment but it is a start-up venture. If your options strike price was set in 2000 I certainly would not buy, if set after a washout or recap then it is your choice to gamble or pass.

Working at a start-up is not a guaranteed path to financial rewards (at any level), but with luck, good timing and/or a good product idea that is right for the market you might get rewarded.

You took a chance and have to accept the risk as well as the reward.
deepciscothroat 12/4/2012 | 10:00:15 PM
re: New Wave of Startup Layoffs They should lay off some of the real deadwood, including Randall Kruep and Ron Young. Talk about a bunch of deadwood punks that got lucky in the last round but couldn't find their ass from a whole in the ground!
hitechguy 12/4/2012 | 10:00:16 PM
re: New Wave of Startup Layoffs theanswer,

Stop whining. If you are comfortable taking
the risk, then exercise the option. If you
are not, then don't.

You joined a startup knowing there was risk
(if you didn't know there was risk, then you
deserve to lose).

Now that you are worried about the outcome you
want a guaranteed deal whereby you can participate in any upside and not lose on the
downside. You want someone else to blame.

If you want to continue with this attitude,
then get out of the startup business and take
your whining elsewhere. It will be better for
you and for those of us that join startups for
the excitement (and the possibility of hitting
it big).

hitechguy (and serial startup guy)

In message 106 "theanswer" said:

"I wonder if some of the cuts are to target people for layoff, which in turn increases the $$$ for founders and VCs, in the event of being bought.
In most cases persons laid off only have limited time to exercise their options. If a startup (founders/VCs) can drag things out far enough then the options can expire leaving the laid off persons nothing. In many cases the outlook for the startups look grim and the laid off individuals are prompted by the CEO/founders not to buy options due to uncertainty. All the while the founders know more accurately what may happen. In fact they get to ride it out until the ship sinks or is rescued for a profit. Should startups (founders/VCs) be held to a standard much like the recently arrested. The persons laid off can be duped out of their options and possible retirement $$$ just like the Enron/Golbal/WCOM/Adelphia/... investors and employees were. Persons working for options see these as an investment in their future. I didn't expect to get rich but at least have some reward for 2 years of hard work for developing the company's products as the VCs and founders did. If the company goes belly-up and the VCs/Founders don't walk away with all the money (above and beyond engineering costs) then I would feel all is fare."

rafaelg 12/4/2012 | 10:00:17 PM
re: New Wave of Startup Layoffs "Persons working for options see these as an investment in their future. I didn't expect to get rich but at least have some reward for 2 years of hard work for developing the company's products as the VCs and founders did. If the company goes belly-up and the VCs/Founders don't walk away with all the money (above and beyond engineering costs) then I would feel all is fare."
__________________________________________________

I have been involved in turnkey acquisitions as a team member/manager for two telecom adversaries. Most of, if not all, resembled the pyramid principle on an investment.
1. - Show what can be acquired with hard work and investment.
2. - Get as many as possible involved in the process (VC, Options)
3. - Once enough are involved, sell the concept or bail out. (Useless products, sell the Venture, retire, etc.)

Many startups burgeoned their initial investment by getting non-technical greedy investors in search of short-term gains, to invest in the plan. Engineers and other professional employees willing to sacrifice with long hours and hard work also bought the plan. The result can be seen by the peak of the pyramid (CEO's, CTO's, etc.) walking away with the loot. Even the companies that bought the ventures were duped!
theanswer 12/4/2012 | 10:00:22 PM
re: New Wave of Startup Layoffs I wonder if some of the cuts are to target people for layoff, which in turn increases the $$$ for founders and VCs, in the event of being bought.
In most cases persons laid off only have limited time to exercise their options. If a startup (founders/VCs) can drag things out far enough then the options can expire leaving the laid off persons nothing. In many cases the outlook for the startups look grim and the laid off individuals are prompted by the CEO/founders not to buy options due to uncertainty. All the while the founders know more accurately what may happen. In fact they get to ride it out until the ship sinks or is rescued for a profit.
Should startups (founders/VCs) be held to a standard much like the recently arrested. The persons laid off can be duped out of their options and possible retirement $$$ just like the Enron/Golbal/WCOM/Adelphia/... investors and employees were. Persons working for options see these as an investment in their future. I didn't expect to get rich but at least have some reward for 2 years of hard work for developing the company's products as the VCs and founders did. If the company goes belly-up and the VCs/Founders don't walk away with all the money (above and beyond engineering costs) then I would feel all is fare.
whitewater 12/4/2012 | 10:00:23 PM
re: New Wave of Startup Layoffs Harley:
"...if you're like me, firmly established in t-com, forget going anywhere else in NJ, you're branded."
--------------------------------------------------
bitdropper:
"Would you mind elaborating a little on your post. What do you mean when you say t'com folk are "branded"? Also, is this just a phenomenon in the NJ area (i.e. Bell Labs' shadow); or would it also apply to Ottawa, SillyCon Valley, or anywhere else in North America for that matter?

From your ealier posts, you have apparently had a difficult search for a new job. For those of us who are anticipating having to bail from t'com at some point, what type of resistence could we expect from employers in complementary sectors?"
--------------------------------------------------
BD-

As a NJ telecom employee who went through a layoff one year ago I would have to disagree with Harley. Alhtough Lucent/Bell Labs experience, for example, does not carry as much positive weight it did 2-3 years ago a solid resume should still get you noticed. Telecom engineers, technicians, etc.. have great skills that can easily be applied to a new field.

The main problem is not branding, but that the job market so tight EVERYWHERE right now! It takes, on average, 6 to 9 months to obtain a new position. That is why unemployement was extended from 26 weeks to 39 weeks. They may even extend it again.

Hopefully people can hang on long enough to find a more secure position!

ehwhatsupdoc 12/4/2012 | 10:00:27 PM
re: New Wave of Startup Layoffs Heard from friends at Procket that more layoffs happened last Friday. Over 30 were laid off, including managers...

Maybe the chips are not working afterall. Affects schedule and pressures the company to lower burn-rate.
rush21 12/4/2012 | 10:00:29 PM
re: New Wave of Startup Layoffs
http://www.startribune.com/sto...

At least it looks like they gave their employees some severance.
52778 12/4/2012 | 10:00:36 PM
re: New Wave of Startup Layoffs Well Horse,

sounds like the way to go for you. Best of luck in your new endeavours !

...and spread the word that time is too precious to be wasted in jobs/environments one doesn't like ... no matter how much one could make in that sick & silly job.

Cicero
lrdr 12/4/2012 | 10:00:38 PM
re: New Wave of Startup Layoffs Those of us who recently interviewed there would like to know, that's who.
Iipoed 12/4/2012 | 10:00:42 PM
re: New Wave of Startup Layoffs Who cares. It is like the people that are responding to this thread take great delight in starting rumors about which company is dying. please someone explain to me the value of this thread. Soon enough employees of the future defunct companies will make their opinions heard on LR.
MajorPackets 12/4/2012 | 10:00:42 PM
re: New Wave of Startup Layoffs In what dictionary?

Like in Scrabble, names don't count, even if I do enjoy Kelsey Grammer on Frasier.


((((((((((((((((((((((((*))))))))))))))))))))))

Cyber,

Grammer and grammar are both accepted as correct spelling! :-)

LS
lrdr 12/4/2012 | 10:00:43 PM
re: New Wave of Startup Layoffs I heard a rumor that they just closed. Has anyone else heard this?
optiquest 12/4/2012 | 10:00:44 PM
re: New Wave of Startup Layoffs That's amazing. I just read an article about how successful Salira was going to be in leveraging its connections to the China market.
bitdropper 12/4/2012 | 10:00:47 PM
re: New Wave of Startup Layoffs "...if you're like me, firmly established in t-com, forget going anywhere else in NJ, you're branded."

--------------------------------------------------

Harley:

Would you mind elaborating a little on your post. What do you mean when you say t'com folk are "branded"? Also, is this just a phenomenon in the NJ area (i.e. Bell Labs' shadow); or would it also apply to Ottawa, SillyCon Valley, or anywhere else in North America for that matter?

From your ealier posts, you have apparently had a difficult search for a new job. For those of us who are anticipating having to bail from t'com at some point, what type of resistence could we expect from employers in complementary sectors?

Thanks,
bd
lightfantastic 12/4/2012 | 10:00:48 PM
re: New Wave of Startup Layoffs You know, I could go on and go about how VCs are evil - but again, who can blame them?

Its a vicious circle - VCs got greedy, overfunded the sector with 800 companies, in turn were staffed with executives and employees who also got greedy watching IPOs like Corvis and Sycamore, expecting their co to be the next great thing..

Meanwhile, everyone in 2000 were spending VC money on Hermann Miller, expensive test equipment, $3000 Gilder conferences, becks beer (don't deny, I've seen you all at the Santa Clara Weston..)

"all about mind share..."

and in 2002? With the firesales going on at eBay for all of the above.. who can blame VCs for being peeved? How much funding went down the toilet on garbage? (Anyone want a sparkling ball with a logo on it ? I'll trade you ANOTHER mousepad!)

As I mentioned in a previous post - we were all acting like kids in a candy store. Everyone is to blame.. VCs, high tech employees, investors trying to make a quick buck on internet stocks.. analysts, press.. think about it all in retrospect.. how many long haul vendors can Qwest really buy from???

-c

jamesbond 12/4/2012 | 10:00:48 PM
re: New Wave of Startup Layoffs We actually run shifts. I know it may be non traditional in the development side of the house, but the value to a start up has already paid off -higher utilization of lab systems ($M), fastest defect isloation and resolution (hrs not days), more complete PV test suite coverage, etc.
------------------------------

I have to agree it is a smart thing to do. Cut
salaries, pay by hour rather than layoff everybody.
jamesbond 12/4/2012 | 10:00:48 PM
re: New Wave of Startup Layoffs Well, if the news in San Jose Mercury of August 1, 2002 on the deamnds by the VCs as to the guaranteed? 3x return on their investment is any indication, why would anyone want to work for a startup? As article says, if a VC invests $100 million and an acquision offer is for $305 mil after say 2 years due to valuation being more realistic or lower, all 500 employees, including founders, if still with the company will have $5 mil to distribute among themselves. Why would people sweat long hours for VCs to walk away with all that money, especially when they do not even bother to visit the place?

---------------------------

Ummm... Have you tried to get a job in last 6mths?
People are lucky to get a job. They won't care if
it is a startup or Cisco.
deadwood 12/4/2012 | 10:00:49 PM
re: New Wave of Startup Layoffs Interesting, those arrogant kids?!

I know the time when this fresh college graduate will walk over to me and give me lecture on industry and what should be done and so on. What is funny is that a lot of these adult kids, will be so big on their ego that they will spare no one. A VC kid gets lucky, invests in a company that is panning ahead for fund, then gets acquired in a few weeks and the VC kid makes a lot of money, goes broadcasting his glaring success. Looks like, likes of him/her will have to sit tight and look for a job. SOme guys who made money when acquiring companies were throwing money away at acquired company started "VC" companies and called everyone a loser. Wonder what are these guys up to these days? At least, they should stop and think who is/are the loser(s)?
deadwood 12/4/2012 | 10:00:49 PM
re: New Wave of Startup Layoffs Well, if the news in San Jose Mercury of August 1, 2002 on the deamnds by the VCs as to the guaranteed? 3x return on their investment is any indication, why would anyone want to work for a startup? As article says, if a VC invests $100 million and an acquision offer is for $305 mil after say 2 years due to valuation being more realistic or lower, all 500 employees, including founders, if still with the company will have $5 mil to distribute among themselves. Why would people sweat long hours for VCs to walk away with all that money, especially when they do not even bother to visit the place?
Richard Hatch 12/4/2012 | 10:00:49 PM
re: New Wave of Startup Layoffs Even many VCs are quietly laying off employees these days, including general partners. Thus management fees are spread among fewer people (since the funds' returns are often effectively zero).
Richard Hatch 12/4/2012 | 10:00:50 PM
re: New Wave of Startup Layoffs Why are you blaming marketing and sales for being unable to sell an inferior product that doesn't work? I've seen this mentality too much from engineering departments. You have to have a sellable product to sell anything. If engineering doesn't deliver, sales can't deliver. Marketing is only credible as long as engineering is credible. It seems so obvious, but some people can only play a blame game without looking in the mirror.
==========================================
Post #78
Top 12 reasons why Zettacom is evil.

8. Marketing & Sales dept. are not functioning at all. Cannot sell.
12. Inferior products. Nothing works and tries to cover it with next generation product
propaganda. A trap waiting for potential buyers to fall into.
mmilinko 12/4/2012 | 10:00:50 PM
re: New Wave of Startup Layoffs bluey, iamnoone;

We actually run shifts. I know it may be non traditional in the development side of the house, but the value to a start up has already paid off -higher utilization of lab systems ($M), fastest defect isloation and resolution (hrs not days), more complete PV test suite coverage, etc.

Things may change, one never knows, but given this topic and thread (on lay offs) the purpose was to 1.clarify company news as requested, 2.share thoughts on some things we're doing differently that perhaps have stayed lay offs.

Hope that helps.

/MM
deadwood 12/4/2012 | 10:00:50 PM
re: New Wave of Startup Layoffs The correct way to say/specify is 12.00 MN (midnight) and 12.00 Noon.
12.00 PM and 12.AM are American way of saying things, such as Aren't I; I have sent you an invite; None of the guys were present ans so on. In these cases, the correct way to say is Am I not?; I have sent you an invitation; None of the guys was available.

For whatever it is worth!
By the way, I am not a "qualified engineer" and I have taken the liberty of posting this message. I hope, "lastmile" wou;dn't mind!
bluey 12/4/2012 | 10:00:52 PM
re: New Wave of Startup Layoffs > Note, midnight is 12:00am, not pm.


Yes, I realized that. I was repeating what the AcceLight marketroid was saying, but I didn't want to get all pedantic on his ass. I guess it's a symptom of the sorts of stupid mistakes that they must all be making since they're all sleep deprived from working until early morning! :)

But of course, let's not forget that they're in the optical networking space, which is HUGE and eevr growing and the chances of a massive multi-billion dollar IPO or buyout by Cisco/Lucent/NT are big big big, baby! So they have to work these crazy hours to grab that brass ring and cash in! Sure, your children won't know who you are after a couple of years, you'll put on 40lbs, be cranky and irritable and chronically exhausted, but hey, your options will be worth big bucks if you just sacrifice and take the chance!
iamnoone 12/4/2012 | 10:00:54 PM
re: New Wave of Startup Layoffs Note: midnight is 12:00am, not pm.

----------------

Author: bluey Number: 74
Subject: Re: other startups Date: 8/1/2002 7:53:05 PM


12:00pm each night? Wow, you guys must be really tough! And I'm sure the code your software guys are writing after midnight is nothing but the highest quality too!
kokoro 12/4/2012 | 10:00:55 PM
re: New Wave of Startup Layoffs Churchill: great!

That's the very point!
You got it by its... roots!

I share all of what you said.

Bye
LightSeeking 12/4/2012 | 10:00:56 PM
re: New Wave of Startup Layoffs Cyber,

Grammer and grammar are both accepted as correct spelling! :-)

LS
lightfantastic 12/4/2012 | 10:00:57 PM
re: New Wave of Startup Layoffs I am afraid we are going to start hearing more and more bitter stories as the months and weeks go by.

I have heard collleagues comment here, "hmph, wait until I am laid off - can't wait to post on LR!"

Techies are posting saying the CEO/Sales VP was full of bull****, but when your companies received $100 million plus of VC financing - you believed your own hype, and as a techie, should you not understand what was feasable?

I think we all wanted to believe, even though we knew deep down that it bordered on the ridiculous.

You lived, you learned, you spent borrowed $$$ on golf shirts, software, 21" monitors - we are all guilty for the optical excesses - and now we are paying the price. And it sucks.

-c
cyber_techy 12/4/2012 | 10:00:57 PM
re: New Wave of Startup Layoffs Author: wilecoyote IGNORE AUTHOR Number: 80
Subject: Re: Startup layoff is natural but ... Date: 08/02/02 10:58 AM

And, learn some grammer.

Shouldn't you first learn how to spell Grammar?
wilecoyote 12/4/2012 | 10:00:57 PM
re: New Wave of Startup Layoffs DUDE: GIVE IT A FREAKING REST WILL YOU!

And, learn some grammer. You are STILL bitter a YEAR after Zettacom fired your sorry butt. Get over it.
lighty 12/4/2012 | 10:00:58 PM
re: New Wave of Startup Layoffs Any body heard about the layoffs at salira.
Rumor has it that they laid off 45 engineers yesterday. The rest off the staff takes a 15% salary cut (only 15 people left). No one from marketing gets laid off why is that?

Probably will be closing the doors down very soon and shifting the remiang stuff to china.
I guess another bites the dust...

I am wondering does the CEO have any idea of whats going on??
Honda_Elise 12/4/2012 | 10:01:03 PM
re: New Wave of Startup Layoffs
I agree. Personal attacks don't benefit anyone.
I'm surprised that emma didn't mention the person's
name. I knew the Director of Product Management
at Allegro and I thought he was fine.
DarkWriting 12/4/2012 | 10:01:07 PM
re: New Wave of Startup Layoffs <<<we <br="" accelight="" announced="" any="" at="" have="" lay="" networks.="" not="" offs="">
Major difference I believe is we have a very 'frugal' culture, for example:
- manage the systems build plan closely,
- leverage component vendors,
- have modest facilities ,
- buy lab equipment on eBay eg.test kit,
- travel at the back of the plane,
- share rooms at events,
- use conferencing tools vs travel when possible
- etc.
Currently we are ~220 between Ottawa and Pittsburgh. You can check the parking lot - full until 12:00pm each night ;-)

/Mark Milinkovich>>>


"leverage component vendors"

Translation - Expect semicustom product to be delivered with no lead time, place orders with prices 25% lower than quoted to see if the vendor will bend over, extend terms to 60 days, then don't pay on time anyway. LMAO

DW

</we>
pooh-bear 12/4/2012 | 10:01:07 PM
re: New Wave of Startup Layoffs http://www.bayarea.com/mld/mer...

VCs learning new tricks to weather the downturn
By Matt Marshall
Mercury News

Venture capitalists have been known to negotiate tough terms with the companies they fund, but they've developed a new bag of tricks to ensure they stay on top during this brutal downturn.

Employees of Silicon Valley's high-tech start-ups are likely to end up near the bottom of the heap; they might want to ask questions before letting their management accept more money.

Take, for example, one arcane but high-octane clause, the so-called ``senior liquidation preference,'' that VCs are slipping into their contracts with start-ups.

Under this provision, VCs demand all of their money back first in the event the start-up is sold -- before management or employees see even a dime of return on their options. Lately, those terms have worsened: The VCs are demanding that they get double, or even, triple their money back before employees see anything.

``In the 18 years I've been in this business, I've never seen that before,'' said Barry Kramer, a lawyer at Fenwick & West in Palo Alto, who published a study last week that analyzed the terms of venture financing for Bay Area start-ups. ``We're changing the rules of the game,'' he said.

Problem is, the terms can create some odd incentives for the rank-and-file. Employees might prefer to see the company go it alone -- even if it risks killing the company -- than watch it get sold at a good price for investors.

One example is San Francisco's Bravanta, a Web service start-up that received funding in February from a group of venture capitalists led by the Sprout Group's Beth Hoffman in Menlo Park. Hoffman demanded, and got, a ``3x'' liquidation preference, meaning that she and the other new investors would get back three times their $11 million before earlier investors, management or employees get anything. Employee options would be worthless.

Put another way: If the company is sold for $33 million or less, her firm and a select group of investors who joined her -- including Doll Capital Management, St. Paul Venture Capital and Menlo Ventures -- will claim the entire proceeds. If the sale is for more than $33 million, the rest is divided up among all the investors based on the percentage ownership of their shares.

Here's why the terms seem so tough that they're almost wacky: In today's market, Bravanta's management would be lucky to get $33 million on a sale. That is more than the investors privately valued Bravanta before they invested, around $25 million.

Sure, a sale would be great for the new investors, who would triple their money. But the terms could kill the employees' motivation to close such a deal. Employees might rather drive it into the ground, or work to achieve quick short-term goals to boost bonuses, ignoring the long-term health of the company.

Hoffman did not respond to a request for comment.

Other investors, St. Paul's Brian Jacobs, and Menlo's Sonja Hoel, said they did not want to comment on why the 3x liquidation preference was negotiated, saying the reasoning should be explained by Hoffman since she was responsible for the negotiations. Jacobs and Hoel benefit from the clauses, and sit on the company's board.

Still, Jacobs suggested the board might revisit the tough terms. The board is now considering a resolution that would grant the employees a certain stake of the proceeds, he said, even in a sale of under $33 million.

``The terms we're seeing now are worse than I've ever seen,'' said Jacobs, who has invested for 15 years. ``Venture capitalists have leverage to ask for all kinds of things . . . My guess is that it is a bit of an overcorrection.''

Bravanta chief executive Brendan Keegan said he, too, was taken aback: ``I was probably not as cognizant going in as I was coming out . . . It's so new.''

He has worked to find other ways to boost employee incentives. Employees earn cash bonuses if they meet personal goals set with managers, extra prizes if they go beyond the call of duty, and more bonuses if the company meets its milestones.

Marketing manager Gina Lopuck, one of Bravanta's 55 workers, considers her short-term bonuses more valuable to her than her options. ``I'm an immediate gratification person,'' she said. Her performance has won her a bike, a home computer system, a coffee pot and a cordless phone, she said.

The irony of the tough terms for Bravanta is that Bravanta itself provides software to companies to help them manage incentive and award programs over the Web.

Bravanta is not alone. Redwood City's Ceon, which makes software for telecommunications space, also swallowed a 3x during its latest round in late March. Brooke Seawell, a venture capitalist at Technology Crossover Ventures, one of the investors in the round, chose not to comment.

According to Fenwick & West's survey of 74 Bay Area financings during the second quarter, 56 percent of them contained senior liquidation preferences. And of these, 41 percent had multiples such as 2x or 3x.

Much of the impact of the tough terms have yet to be felt. With their stock prices drubbed by the stock market, public companies have weaker currencies to acquire start-ups. Sales of private companies haven't been robust, but they might be over the next year or so.

``There's a lag,'' said Ravi Chiruvolu, a venture capitalist at Charter Venture Capital, who is concerned by the trend in liquidation preferences.

To be sure, they can make sense in some cases, he notes. The details are complicated, but an investor might want to protect his investment against dilution from earlier investors who also demanded preferences. But Chiruvolu said he has been forced to take leadership during negotiations of his deals, making sure employees are aware of the harsh terms. All too often, he says, venture capitalists don't bother to disclose the arcane details to management or employees. ``The default is not to disclose,'' he said.

For those who can stomach more grim statistics on this and other tough contract clauses, F&W's survey is at http://www.fenwick.com/vctrend....
bluey 12/4/2012 | 10:01:07 PM
re: New Wave of Startup Layoffs 12:00pm each night? Wow, you guys must be really tough! And I'm sure the code your software guys are writing after midnight is nothing but the highest quality too!
lightfantastic 12/4/2012 | 10:01:09 PM
re: New Wave of Startup Layoffs emma -

Fingerpointing is not nice - how would you feel if you were that person?!!! This is a small community, let's not start listing who deserved what.

-c
emma 12/4/2012 | 10:01:11 PM
re: New Wave of Startup Layoffs >Author: cyber_techy Number: 15
>Subject: Who hasn't laid off? Date: 7/31/2002 >4:27:03 PM

>Laurel, Catena, Crescent, Cereva, Gotham, >Tiburon, Home Depot, Walmart, Sears, Texaco

Yikes? You must have been partying like it was 1999! Don't know much about Laurel or those brick and mortar companies. However...

Catena: big layoff a few weeks ago. I believe about 50 people were let go.

Crescent: Four layoffs. No customers in sight, unless you count sending Hispanic SEs to Japan to waste time at NTT-ME. Plus the Boston-area VCs who passed on funding them keep asking about "how are they doing?"

Cereva, Gotham, and Tiburon: RIP baby!

Some of the layoffs are good. The Director of Product Management at Allegro was technically less than zero, so at least they got rid of some of the chaff!
macarther 12/4/2012 | 10:01:11 PM
re: New Wave of Startup Layoffs I heard through sources that Network Elements is
continuing with staffing cuts. They have not
announced any major design wins with a customer to
date. Is this true?

optical_pow 12/4/2012 | 10:01:11 PM
re: New Wave of Startup Layoffs These days joining a University is not as easy as you think!. There are lot of people in the que even for an adjunct position. Good luck.
52506 12/4/2012 | 10:01:12 PM
re: New Wave of Startup Layoffs The 3 idiots who pump MRVC stock on Yahoo are idiots who just happen to have options on stock that are worthless until they get into the 12 dollar range, so they, like fools bought more for about 5 bucks and a buck fifty and now they are pumping their lies to try to prop up the stock like Noam is doing Buy-Backs of Stocks.

This is a precursor to a NEW WAVE of STARTUP LAYOFFS!

Charlottes Web...all the companies of MRVC are all good companies but together with a weighed down burden called MRVC that owns them, they become worthless.

The stock has been hovering at $1.30 and change for a while and now its time to be permanently marked below that for a new watermark of approx. $1.00 to 89 cents. Book worth which are misleading at best is no reason to prop this stock as analysts have indicated by lack of participation on mass of this Piece of Shit stock.

MRVC stock is strictly bottom feeding stock until they turn a profit from their operations. Cost cuttings are easy. Just cut the fat! Cut out those highly paid individuals whose sole purpose is to come in at 9:30AM and not do anything all day until 4PM after 2 hour lunches on Delta.
Spaz 12/4/2012 | 10:01:13 PM
re: New Wave of Startup Layoffs Light wrote:
Following article does not seems to agree with your hunch:
http://www.ventureeconomics.co...

_________________________________________________

You shouldn't believe everything you read. Bob's lying. If Maple has enough money for 6 months, why haven't they paid any suppliers for the last 3 months or more? I think this one's about over.

Spaz
meaty_urologist 12/4/2012 | 10:01:13 PM
re: New Wave of Startup Layoffs Terry, Thanks for clearing up my confusion. Sorry, I had not heard much about you folks lately (or seen recent funding) and noticed the disappearance of the SPIE ITcom talk. It is good to see that you are still moving ahead. Best regards.
mmilinko 12/4/2012 | 10:01:13 PM
re: New Wave of Startup Layoffs We have not announced any lay offs at AcceLight Networks.

Major difference I believe is we have a very 'frugal' culture, for example:
- manage the systems build plan closely,
- leverage component vendors,
- have modest facilities ,
- buy lab equipment on eBay eg.test kit,
- travel at the back of the plane,
- share rooms at events,
- use conferencing tools vs travel when possible
- etc.
Currently we are ~220 between Ottawa and Pittsburgh. You can check the parking lot - full until 12:00pm each night ;-)

/Mark Milinkovich
TheChief 12/4/2012 | 10:01:14 PM
re: New Wave of Startup Layoffs In my many (too many) years I have work as a System Engineer and Software Engineer in many different industries that include military, medical, cable TV boxes, video, and telecom. From my experience every industry has there ups and downs. I also found out that companies would layoff direct employees while keeping contracts. When I asked a manager I knew, his response was "different color of money". I went contracting the next week and have been doing it for 17 years. A year ago I was terminated early and had to spend a year in Atlanta. I am now working as a contractor back home in Dallas at a big name company that has been laying off. Work out there, are you willing to move to get work is the question?
sailor 12/4/2012 | 10:01:14 PM
re: New Wave of Startup Layoffs Forced_out_10 uses the dribs and drabs method of cutting. Cut 10 people this week and don't tell anyone, 10 next week, and 10 the week after. Maybe nobody will notice that 30 people have disappeared. Those type of cuts usually stay under the LR radar and hence no bad press.
lightfantastic 12/4/2012 | 10:01:14 PM
re: New Wave of Startup Layoffs You know what the worst part is? Emailing acquaintances at companies like Lucent, Corvis, Nortel, Allegro - and having no idea if they are still there! IT just redirects email to their boss - so you can contact someone to see if they made it through the layoffs, only to not hear back.

Not until, of course, the hotmail email a week later.

Good luck to us all!

-C

oeo2oo 12/4/2012 | 10:01:15 PM
re: New Wave of Startup Layoffs While sub-leasing space in Texas might be a bad sign for Optical Switch, it might not be all that bad. Aren't they doing most of their work in Bedford, MA?

Anyone know if they have reduced ranks there?
bitNbyte 12/4/2012 | 10:01:15 PM
re: New Wave of Startup Layoffs
surprised to see no mention of layoff at force10 either here on LR or in the media. don't know how big was the layoff. a friend of mine was sent home about 2 weeks back.

bitnbyte
Harley 12/4/2012 | 10:01:16 PM
re: New Wave of Startup Layoffs Good luck trying to get a job with any of the pharmaceuticals. Check out some of my other posts - if you're like me, firmly established in t-com, forget going anywhere else in NJ, you're branded.

52668 12/4/2012 | 10:01:16 PM
re: New Wave of Startup Layoffs anyone has news of Tropic, Accelight, Catena, etc?
lrdr 12/4/2012 | 10:01:16 PM
re: New Wave of Startup Layoffs Like I said below, I heard that they will be having a pretty big layoff on Monday.
aa 12/4/2012 | 10:01:16 PM
re: New Wave of Startup Layoffs How are they doing in this environment?
52657 12/4/2012 | 10:01:17 PM
re: New Wave of Startup Layoffs We didn't skip our talk at the SPIE ITCom in Boston this week, we informed the moderator last week that we would not be presenting our product test results until a conference in the Fall of 2002. As a company our financial health is excellent, and our product development is on track. We're also looking for a few more senior people with backgrounds in optics and mixed-signal IC design.
Terry Smith, CEO
owl-light 12/4/2012 | 10:01:18 PM
re: New Wave of Startup Layoffs It may be a "non-telcom" product, but who do you think buys the tools? And other sectors are having, beginning to have, or will soon have the same troubles as telcom.

Before investing a lot of time and effort into it, why not talk to potential customers and see what the interest is?

A group of us layed-off types tried that and found out pretty quickly there was no interest in our idea (even though we were highly qualified), considering today's economic outlook. And I always thought that if we really had a good idea and were of the entrepreneurial type, we would have tried developing the idea BEFORE we got layed off.

Still, when you have nothing better on the horizon, it sure doesn't hurt to try.
navmot 12/4/2012 | 10:01:18 PM
re: New Wave of Startup Layoffs This is not something I put together in one night. I was part of a group that had a layed off CEO, VP of Marketing, Product Manager, and SQA Manager (me) and we worked several months on bringing this idea around. But the group broke up because several of us got jobs and getting off unemployment was our highest priority.

Before we broke up we did approach Compaq (before HP) and we got a very positive response from a decision maker at the VP level.

Being in SQA I know a tools product that addresses process and adds value will be well received and I think now is a good time to develop such a product. When this recession is over developing quality products will be paramount and we would have a product offering ready to go.

Navmot


optical_IP 12/4/2012 | 10:01:20 PM
re: New Wave of Startup Layoffs There are bigger differences. In Academia,
(at the PHD level and on the tenure track),
the criteria for judging you and your work
are entirely subjective. Until you get tenure,
you are always living step away from losing
everything.

And to make really big money, its like every
other profession. You only make big money if
you bring big money in.
------------------------------------------------

Profs in univs are also having a very tough time getting funding for their research. With industry funding drying up after 2000 and DARPA funding drying up after 9/11, profs are having a very tough time supporting their PhD students.

Most new profs work long hours ........ and I am sure they put in as much work as any employee in a startup would.

In such tough times only the best profs at the best univs are getting funding. its no different from industry ........ only the best survive.

u may want to think twice before switching to academia.

take care

optical_IP
navmot 12/4/2012 | 10:01:20 PM
re: New Wave of Startup Layoffs I am serious. I have a product idea and much of the business and marketing plan done for a non-telecom product but I can't finish it by myself. It's a software tools product that concentrates on process and the software development life cycle. I would need a developer and a marketer to help get seed money and get a prototype done before we presented it to the VC's.

If anyone is interested and if you live in NH or MA and want to know more, let me know.

Navmot
skeptic 12/4/2012 | 10:01:21 PM
re: New Wave of Startup Layoffs That said, there is a difference between working in academia and industry. In academia, you have a choice, you can earn grades A, B, C or below and can still survive and can earn a degreee/diploma.
-------------

There are bigger differences. In Academia,
(at the PHD level and on the tenure track),
the criteria for judging you and your work
are entirely subjective. Until you get tenure,
you are always living step away from losing
everything.

And to make really big money, its like every
other profession. You only make big money if
you bring big money in.


jamesbond 12/4/2012 | 10:01:22 PM
re: New Wave of Startup Layoffs That said, there is a difference between working in academia and industry. In academia, you have a choice, you can earn grades A, B, C or below and can still survive and can earn a degreee/diploma. In industry, especially the environment of a startup, either you are at the top with A+, or you are out. This keeps your competitive spirit up, something obviously lacking in a university.
----------------------------------

cyber_techy:

invalid comparison. original poster was talking
about teaching at a university (not studying).
Teaching isn't as easy you would think and it
is challenging and competetive in terms of
getting papers published, getting funding etc.


horse of a different color 12/4/2012 | 10:01:22 PM
re: New Wave of Startup Layoffs Ahhh...academia. The good life, eh? Fine if you like to teach and are good at it...hell, we need a lot of good teachers. Sounds like a fall-back-plan to me. Back to the comfort zone from where one's career was hatched.

Come on...if you're going to change, change. Make a bold step. That's what I've decided to do. I was in high-tech (marketing, product management, support) for 30 years - the last 8 years in telecom - and found that I was simply not motivated anymore. I could teach, but that wouldn't solve the problem. The last thing I want is an unmotivated teacher!

I am going into a profession that I am truly interested in and one that, I hope, will keep me motivated. It's spending time outdoors, and will allow me to control my own schedule, income and ultimately my own destiny. No more cubicles for me. No more endlessly irritating, redundant, useless meetings, listening to someone drone on about crap I no longer care about. No more crap like spending all day collecting "action items" and then having to spend nights and weekends actually getting something done, only to find it out later it wasn't really necessary.

I know many of you can't make a change like I am, for many reasons (family, money, etc.). I have been lucky enough to be in a position to be able to do this. It's a gamble, but one I'm willing to make. I long to be passionate about what I do again. It's something I haven't felt for a very long time. Now that I'm preparing to enter this new endevour, I'm starting to feel that way again, and it feels good.

Good luck to all of you out there thinking about changing careers. Get some cahonies and really make a difference. You will if you truly love what you are doing. Ask yourself if you do right now...

Horse
veluthuru 12/4/2012 | 10:01:23 PM
re: New Wave of Startup Layoffs
I am in the Telecom industry. I had entered the industry after my PhD (Computer Science) about 5 years back. I agree it was lot of fun till about 2000.

These days I am spending late hours and working weekends in a startup. While I like challenges I am not sure I want to permanently ride roller coaster for the rest of my life.

Lately I have been seriously thinking of joining University as a Professor - for a stable career and family life.

I am looking for any advice from experienced readers that would help me shape my career, since it is not clear the last couple of years is any indication of how it will be for the next, say, 15 years.

Thanks
- Light
lightfantastic 12/4/2012 | 10:01:23 PM
re: New Wave of Startup Layoffs The way I look at it as well is - it has been one hell of a ride! I have had the opportunity to meet more people, build a company, and develop my career more in 4 years than I could in a tradional industry in 8 years.

As I stated, I am still lucky to be gainfully employed, but I am tired of worrying. In the last 6 months I have tried to prepare for what I feel is inevitable, and I am ready now.

Also, there is a different feeling to being part of a mass layoff - easier to deal with then if you were let go in January 2000 - it's not you, it's your role, your dept, your product line.

Plus, for everyone working at a start up or a big player - be honest - are you still passionate about your work? Do you still live and breathe your job?

I don't. Not anymore. I work, maybe 8 to 6, and spend my nights with my friends and family. I am not interested in killing myself, staying at my desk until 10pm anymore. No thank you!

Does that make me a bad employee? It feels like it sometimes.. I remember the days of 70 hours weeks, and feel like I am not 100 per cent committed. Then I think.. When did 50 hours a week become a BAD thing???

-C
whitewater 12/4/2012 | 10:01:24 PM
re: New Wave of Startup Layoffs Onetta did shut down it's Piscataway, NJ location (I can't confirm layoffs in CA, though). Onetta NJ neighbors have also been busy 'cleaning house'...Corporate Place South is turning into a ghost town.

Photuris had a 10% layoff and pay cuts in June. Rumors of future cuts as well...

JDS Uniphase closed down the former SDL Veritech site (~250 layoffs over the past year, ~25 employees relocated to other locations).

Innovance had a 7% layoff in January along with pay cuts. Rumor has it that there will be a significant layoff (30%) shortly. Can anyone confirm?

6 months seems to be the norm for securing a new job here in NJ and many people I know are moving into other industries (The pharmacuetical industry is huge here).
Fortunecookie 12/4/2012 | 10:01:24 PM
re: New Wave of Startup Layoffs Very well said. Thanks.
52534 12/4/2012 | 10:01:26 PM
re: New Wave of Startup Layoffs For anyone looking for true stability, the truth is you have to create it yourself by starting your own business that is not dependent on technology cycles. Forget technology and engineering - engineeers are considered to be assets like computers and office furniture and thus expendable. Think about it - you went to school, learned lots of stuff, became real proud - but you really only learned how to make money FOR OTHER PEOPLE.

People who own their own small businesses like delis, restaurants or small service establishments know this. They create their own security.

I'm trying to get out of this sector - if you want to raise a family, pay for the kids to go to college and create a retirement, you can't look to big business to grant you a comfortable life simply because you have "skills". It's time to wake up.

We have all been had.
Fhunton 12/4/2012 | 10:01:27 PM
re: New Wave of Startup Layoffs This saturation after 5-8 years applies to people working in everyother industry besides medicine & law.

All industries the same from biotech to telecoms to tourism.

There is nothing you can do, it's the way economies work, few years down the line there will be another bubble expanding where we will try to get and that will burst, there will be another economic downturn/upturn/downturn....everything goes in cycles in economies,on the down turn u just need to find a safe port in the storm..

It is bad now, will get worse, but will get good again.
cyber_techy 12/4/2012 | 10:01:27 PM
re: New Wave of Startup Layoffs Grass is always greener on the other side, that is, until you actually go there.

That said, there is a difference between working in academia and industry. In academia, you have a choice, you can earn grades A, B, C or below and can still survive and can earn a degreee/diploma. In industry, especially the environment of a startup, either you are at the top with A+, or you are out. This keeps your competitive spirit up, something obviously lacking in a university.
Dr.Q 12/4/2012 | 10:01:27 PM
re: New Wave of Startup Layoffs bud1tig2-

I have heard similar rumor, but have not yet been able to confirm or refute.

[See the 31July article "The Telltale Sign", esp. telltale sign #10.]

- Dr. Q
52634 12/4/2012 | 10:01:28 PM
re: New Wave of Startup Layoffs Prof. Tech,

interesting post. can you enlarge on a few points?

what do you mean by a gig - are we talking projects here?
how does experience beyond a certain level hurt you?

any other advice?

Dr. Enamel
52630 12/4/2012 | 10:01:29 PM
re: New Wave of Startup Layoffs Don't forget Accelerant Networks, they laid off
about 15%...

My sources tell me the CEO gathered up everybody
(everybody that was not laid off, that is...)
and told them that with no design win in sight
for their serdes, some people have to go...

He said they have two chips and not a single
buyer...

DocHolliday
52627 12/4/2012 | 10:01:29 PM
re: New Wave of Startup Layoffs I worked as an engineer in the telecom/networking industry for eight years before changing careers and going back to academia. After getting a PhD in computer science, I decided to go into industry for the fun and fortune. I spent eight years doing that (mostly in Silicon Valley), decided it was a far from ideal way to spend one's life, and got a university job instead. Here's some of what I learned:

1) Working in this industry is not a career; it's a series of gigs. It can sometimes be fun and exciting, but it never lasts for long. Consider yourself lucky if you had a productive and fun two years before it's time to move on to the next gig. This applies to both established companies and startups.

2) The pay is not bad initially, but it peaks after a few years, and doesn't grow much. Extra experience beyond 5-8 years doesn't get you higher pay.

3) In general, experience beyond a certain level doesn't help you (at least in software), and may hurt you. Other professions (law, medicine) are very different in this regard. There's no such thing as "becoming a partner" in engineering (stock options are as close as it comes, but they're very often worthless).

4) It's hard to see why anyone would want to remain an engineer for more than 5-8 years. The pay doesn't increase, status doesn't increase, job security doesn't improve, working conditions don't improve (same noisy cube). It's usually a dead-end. There aren't many ways to escape this fate. I guess one way is to become an entrepreneur.

5) The lack of stability DOES become a problem at some point. Maybe not in your twenties or early thirties, but certainly after that.

I had some good times in this industry. It can certainly be fun, but I just didn't see good long-term career prospects, so I switched careers while I still could. Good luck to everyone who's still in this business!
Honda_Elise 12/4/2012 | 10:01:30 PM
re: New Wave of Startup Layoffs
The layoffs at Allegro were deep. ASIC was cut
by 50%, as well as hardware. Software got the
smallest cut as they are probably the most needed
at this point. The ax didn't avoid any department
and there were no sacred cows, not even admin.
A lot of talented people were lost, as I'm sure
there have been at other startups.
jamesbond 12/4/2012 | 10:01:30 PM
re: New Wave of Startup Layoffs ? just wait until the mega reverse split spree starts. there are no bargains yet
-----------------------------------

I totally agree. Cisco/Intel PE ratio is @100.
Applied Materials is 1600! Cisco and Sun
had stock splits every year from 1995 to 1999.
Cisco even split twice in one year. Well now
is the payback time.
lightpimp 12/4/2012 | 10:01:31 PM
re: New Wave of Startup Layoffs back in the day. there is no recovery until the bleeding stops! think these guys are buys right now? just wait until the mega reverse split spree starts. there are no bargains yet!
meaty_urologist 12/4/2012 | 10:01:32 PM
re: New Wave of Startup Layoffs I see that StrataLight had skipped out on their talk at SPIE ITCom in Boston this week. They didn't even contact the organizing committee.

It looks like StrataLight is out of business as far as I can tell. Anyone have any confirmation on this?
Light 12/4/2012 | 10:01:32 PM
re: New Wave of Startup Layoffs Following article does not seems to agree with your hunch:
http://www.ventureeconomics.co...
lrdr 12/4/2012 | 10:01:33 PM
re: New Wave of Startup Layoffs I've heard that a couple of times, but they seem to be still hanging on. Zhone too. I heard Calix is laying off next week.
chips 12/4/2012 | 10:01:33 PM
re: New Wave of Startup Layoffs To my fellow Ottawa high techies,
Have you noticed that Silicon Alley North is starting to look like Silicon Skid Row? All of these out of work high tech workers out on the street with dazed expressions on their faces trying to figure out what hit them. Those with jobs are developing a siege mentality to cope with the increasingly desperate calls from the "old buddies" looking for a job.
What is alarming is the excessive length of time the average laid-off Ottawa high tech worker is out of work. A year is not unheard off and the end is nowhere in sight. And to think that these good people were told only 18 months ago that they were high performers with critical skills.

I've also noticed a shift in expectations. At first the idea was that the people in this situation would ride the storm out under the severance package umbrella, but now Gǣcareer changeGǥ is the operative phrase. When and if the demand returns, it will be a tough sell to get these skills back into telcom. Once burned (or more), twice shy. Don't blame them either.


chips
MajorPackets 12/4/2012 | 10:01:34 PM
re: New Wave of Startup Layoffs Not surprising considering they were targeting WCOM/UUNET in particular, trying to emulate Ascend's wholesale-enabled RAS model.

Good luck to ANYONE involved with IP Services over the next few years....

bud1tig2 12/4/2012 | 10:01:34 PM
re: New Wave of Startup Layoffs Rumor has it that Onetta has shut down its NJ facility and got rid of more engineers in Ca.
Third round in less than a year...Execs can stretch out VC money and keep their high salaries.
next-gen-wisdom 12/4/2012 | 10:01:35 PM
re: New Wave of Startup Layoffs People,

What goes up comes down, and who laugh at last laugh better.

Not soon, but this will just calm down.

Right now there are too many players in the field.
I'mRael 12/4/2012 | 10:01:36 PM
re: New Wave of Startup Layoffs
We're all hovering like flies...
cpr 12/4/2012 | 10:01:36 PM
re: New Wave of Startup Layoffs Add Teraburst Networks @40%

-- cpr
USA 12/4/2012 | 10:01:36 PM
re: New Wave of Startup Layoffs Corona Networks got rid of some of their Sales Engineers. Must be getting desperate.
52506 12/4/2012 | 10:01:37 PM
re: New Wave of Startup Layoffs After coming back from a trip from China to inspect what he thought was his triumphant return, Aaron Uri Levy was canned on his ass as the ex President of Luminent. No one cried and everyone cheered his projected demise.

New rounds of layoffs are in the works as non productive assemblers and incompetent design engineers who were not snagged previously will be nailed again due to the continual loss in profits.
52614 12/4/2012 | 10:01:38 PM
re: New Wave of Startup Layoffs when you go to LR's Jobs page, they should install a laugh track. :-)
optrick 12/4/2012 | 10:01:38 PM
re: New Wave of Startup Layoffs You missed -
White Rock, another 25% a few weeks ago
General Bandwidth, 75%, yes 75%, a few weeks ago
Santera, another 25% this week
horse of a different color 12/4/2012 | 10:01:38 PM
re: New Wave of Startup Layoffs opto-kleenax...

You bring up a good point. As bad as things are, we must all maintain our sense of humor. It may be all we have that keeps us from going nuts. I know I have been off work more in the alst year than in my entire career. If it weren't for having stuff to do around the house (ah, the never-ending honeydo list), I think I'd go stir crazy. Try to get even a low-paying joe-job afetr having been a high-paid high-tech marketeer. When the hiring manager finds out you were making 3 times what he makes, you bet they're gonna snap you up. In a pig's eye. This is the time when that sense of humor comes in handy. It's what keeps folks in the armed forces from going crazy in times of war or "conflict". And this is just another type of war. These aren't easy times, so we all have to find our own ways through our "conflict".

IMHO, the war criminals that should be tried and hung are all the corporate exec's who told the grand stories and made us all believe them. Then cashed out while floating gently to the ground via their golden parachutes.

Ah...the 'ol "rant-'o-the-day". I feel better now.

Horse
alligator 12/4/2012 | 10:01:39 PM
re: New Wave of Startup Layoffs As did Gotham and Tiburon.
And will Crescent in the next month.
bitnews 12/4/2012 | 10:01:39 PM
re: New Wave of Startup Layoffs I guess from your comment your from Ottawa, as a fellow telecom/high tech worker from this area what companies are hiring cause all I see around me is a bunch of my friends out of a job with nothing more in there hands then there unemployment checks.... bunch of leads on job websites without any real jobs behind.

bitnews
lightfantastic 12/4/2012 | 10:01:40 PM
re: New Wave of Startup Layoffs Who hasn't laid off? Cereva hasn't laid off, they shut down!
lightfantastic 12/4/2012 | 10:01:40 PM
re: New Wave of Startup Layoffs LOL... would you like more coffee with your IP service delivery platform?

As for what city I live in, I am originally from Silicon Alley North (way up in Canada, eh?) and there are companies hiring.. again, not so much on the high tech side.

-C

cyber_techy 12/4/2012 | 10:01:40 PM
re: New Wave of Startup Layoffs Laurel, Catena, Crescent, Cereva, Gotham, Tiburon, Home Depot, Walmart, Sears, Texaco
new_light 12/4/2012 | 10:01:40 PM
re: New Wave of Startup Layoffs Heard Maple may be closing their doors soon as well.
jgh 12/4/2012 | 10:01:40 PM
re: New Wave of Startup Layoffs I understand McDonalds and Starbucks are hiring in Boston, Richardson and San Jose.
Wants fries with your optical switch or can I supersize your Media Gateway?
jamesbond 12/4/2012 | 10:01:41 PM
re: New Wave of Startup Layoffs Luckily for me, I live in a city that is not dependent on high tech, there are several
industries actually hiring.

-------------------------

Can you tell us which city is that?
lightfantastic 12/4/2012 | 10:01:41 PM
re: New Wave of Startup Layoffs Da Horse -

Good for you. I am still hanging on by a thread, and part of me just doesn't want to give up, but the other part of me is tired of waiting for the ax to fall, and i know it is coming. Luckily for me, I live in a city that is not dependent on high tech, there are several industries actually hiring.

I really do believe that marketing really got the short end of the stick though. When all these companies got started, marketing was the number one priority (it usually is when there is no product). So marketing does their job, gets investors and employees excited, pulls off trade shows, gets tons of press, and WHACK, off with their money-spending heads at the sign of trouble.

I know, who is more valuable to a start-up, the people building the product, or the people marketing it? I just wish that companies didn't put such a heavy emphasis on marketing in their early stages, because look where it has brought many of us.

Ahh.. lessons learned from the bubble, chapter 12.

-C
stuartb 12/4/2012 | 10:01:42 PM
re: New Wave of Startup Layoffs Appain too, they let 40 or more go about two weeks ago. This should be expected though, so its newsworthiness is questionable.

-Stu
wildcat20 12/4/2012 | 10:01:42 PM
re: New Wave of Startup Layoffs Rapid5 Networks let go of their entire staff in Richardson and closed the office. They have let go of a lot of people in their home office in San Jose as well. I would guess they have let go of around 75 percent of their staff when it hit it's high of about 275 people a year ago. At one time Richardson had about 50 percent of Rapid5's staff, now of course they have 0 percent.
horse of a different color 12/4/2012 | 10:01:42 PM
re: New Wave of Startup Layoffs churchill,

Join the club. If you are/were one of the marketing/admin people unlucky enough to be in high-tech (not just telecom), you are either on the street or fearful of losing your job. In the last year, I know of no one that has gotten a job...only ones that have been laid off. In 6 years in the Sillycon Valley, I got laid off 3 times...which had never before happened in all my many (too many perhaps) years in this industry. So I did just what you mentioned. Got the hell out. Going into another business that is completely unrelated to high-tech. Basically putting my future back into my own hands.

By the way...another layoff just happened at Tasman Networks as well, so can add that one to the list.

da horse
johnnybgoode 12/4/2012 | 10:01:42 PM
re: New Wave of Startup Layoffs You missed TeraConnect too. They laid off their entire development group.
gea 12/4/2012 | 10:01:42 PM
re: New Wave of Startup Layoffs Any truth to the rumors that of the 8 employees at Lightreading, 7 will be laid off, but a new employee, Harvey Mudd, will be added in an effort to inject some lightness into the recent bad news...
Tim Ber 12/4/2012 | 10:01:43 PM
re: New Wave of Startup Layoffs Turin Networks cut 50 last week.

http://www.pressdemocrat.com/b...

loveduck 12/4/2012 | 10:01:43 PM
re: New Wave of Startup Layoffs LuxN went through 4-5 round of lay off, but Ligth reading did not mention a word. LuxN cut their head count from about 250-260 to about 60-80 by now.
StartUpGuy1 12/4/2012 | 10:01:44 PM
re: New Wave of Startup Layoffs At Allegro, mostly sales/marketing folks but some engineers also. They kept their field support engineers to get them through their field trials and evals. Dont need peddlers to do that...
lightfantastic 12/4/2012 | 10:01:45 PM
re: New Wave of Startup Layoffs Does anyone know who was laid off at Caspian and Allegro? I can't imagine either company had too much marketing/admin staff, so my guess is that many of the cuts came deep in engineering.

I am curious to know who this affected.

I am thinking it is time to get the hell out of Dodge - I don't want to fight anymore!
52591 12/4/2012 | 10:01:46 PM
re: New Wave of Startup Layoffs Ceyba has also cut over 20% of their staff and probably will be cutting more in the near future
strands555 12/5/2012 | 12:35:05 AM
re: New Wave of Startup Layoffs re: Don't forget the recognized leader in the PON market, Quantum Bridge."

Where are you getting your information from? Quantum Bridge is far from being the leader in the PON market.

--------
Not sure it means much to be the leader in the PON market. By 2004 that may be equivalent to being the leader in vinyl record players. Outside the US there is little interest in PON (nor anywhere near as much hype and propaganda as the US press). A majority of FTTH deployments outside the US are point-to-point, and I suspect by 2004 that will be true in the US also.

PON made sense back when it was conceived, in the early days of optical networks. Even as recently as two years ago there was still a reasonable cost and value proposition case that could be made, but not any more.

Experience in essentially all technologies is that when you have high cost media/components at the early stages of market development, and you're trying to decrease the costs of the media intiially, you start out with shared media networks (e.g. shared ethernet in enterprises, party lines in phones).

Ultimately you migrate to the point of saying this doesn't cut it anymore. It worked to get things started but becomes too much of a boat anchor--a burdensome future liability.

If we were back in 1990, PON would make sense to get FTTH started. But, FTTH deployments essentially sat idle since the conception of PON and you now can make the value proposition for point-to-point. I know of several recent FTTH contract awards where point-to-point handily beat PON in head-to-head bid competition, much to the surprise of the people doing the deployment. I even know of a large incumbent that is an FSAN member who recently concluded analysis showing that PON does not have anywhere near the economic advantages it used to. That's not an outright rejection of PON, but it's a pretty significant statement and changing of position, given the source.

Deploying PON now would be like an enterprise deploying shared Ethernet today. The PON platform just makes no sense anymore, regardles of ATM or Ethernet.

There will still be PON deployments over the next couple years. I doubt PON will completely die by then, but those deployments will be sorry they did it by 2005, and they'll be stuck with it. They'll be especially sorry if they deployed with distributed splitters.
optical Mike 12/5/2012 | 12:35:08 AM
re: New Wave of Startup Layoffs From optical_hell
"Don't forget the recognized leader in the PON market, Quantum Bridge."

Where are you getting your information from? Quantum Bridge is far from being the leader in the PON market.
real_class2001 12/5/2012 | 12:35:15 AM
re: New Wave of Startup Layoffs
Quantum Bridge needs to die. Hardware OK, but
lousy network management and control software made it very - VERY - difficult to run even a small access network. Killed my budget because of all the excess maintenance costs. To hell with QB. I switched to Lucent solutions, since then I have been one happy customer. One more thing about QB, they lie about their product performance ...... One Pissed Off Customer
real_class2001 12/5/2012 | 12:35:15 AM
re: New Wave of Startup Layoffs
Quantum Bridge needs to die. Hardware OK, but
lousy network management and control software made it very - VERY - difficult to run even a small access network. Killed my budget because of all the excess maintenance costs. To hell with QB. I switched to Lucent solutions, since then I have been one happy customer. One more thing about QB, they lie about their product performance ...... One Pissed Off Customer
sinorat 12/5/2012 | 12:55:14 AM
re: New Wave of Startup Layoffs Hahahahahaha -- Quantum Bridge -- make sure TZ doesn't stop short or DH will get LOST in there!
Abandon All Hope All Ye Who Enter Here......
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