Open RAN vendor Airspan cuts jobs

Airspan said it 'implemented a cost reduction and restructuring program' that included 'termination agreements with employees.' But the company has yet to detail the scope of those actions.

Mike Dano, Editorial Director, 5G & Mobile Strategies

August 11, 2023

3 Min Read
Open RAN vendor Airspan cuts jobs
(Source: Pixabay)

Airspan appears to be the latest telecom equipment vendor to suffer a round of layoffs amid a dropoff in demand.

"In the second quarter of 2023, as part of a strategic review of our operations, the company implemented a cost reduction and restructuring program," Airspan wrote in its latest SEC filing. "The 2023 Restructuring Program was primarily comprised of entering into severance and termination agreements with employees. Formal announcements to the relevant employees were made in May, June and July 2023 and activities will be ongoing throughout the third and fourth quarter of 2023. The payments related to severance costs should be completed by March 31, 2024 and the payments related to the building costs should be completed by December 31, 2024."

The company recorded a charge related to the move of roughly $3 million.

At the end of last year, Airspan counted 226 full-time employees and contractors worldwide dedicated to sales, marketing and customer service.

Company officials did not respond to questions from Light Reading about the extent of the cuts.

In its second quarter, Airspan reported a net loss of $33.6 million, compared to a net loss of $20.9 million in the first quarter 2023, and a net loss of $21 million for its second quarter 2022.

Other suppliers have cut staff

Airspan isn't the first telecom vendor to embark on cost-cutting efforts amid a slowdown in spending on network equipment, nor will it likely be the last.

Indeed, just last week Wi-Fi and fixed wireless vendor Cambium Networks said it would cut around 10% of its staff as it struggles to regain its footing following a disastrous second-quarter earnings report.

Prior to that, 5G equipment supplier Ericsson said it would cut 750 employees from its North American business as it shutters its field services operation.

Separately, cell tower owner Crown Castle said recently it would discontinue offering network installation services within its cell tower business. The company said it would cut around 750 positions, or 15% of its workforce, as a result.

Others cutting jobs in recent months include Cisco, Verizon, Dish Network and AT&T.

Part of the issue stems from a bigger-than-expected decline in spending among network operators. Vendors ranging from Adtran to CommScope, Nokia, Ericsson, Corning, Crown Castle and others have reported a shortfall in network equipment demand among their customers.

And that shortfall is likely related to the fact that competition is increasing overall in the US telecom industry without any signs of an increase in revenues due to technologies like 5G.

Steps forward and back

For Airpsan specifically, the company had hoped to make a splash with an embrace of open RAN technologies coupled with sales of equipment to private wireless networking customers as well as cable providers. And Airspan has enjoyed some success; for example, Gogo and NextWave are among the companies building networks with Airspan equipment.

Open RAN promises to allow network operators to mix and match vendors via open interfaces. A range of entities, from Dish Network to the US government, support the technology. However, the open RAN market isn't developing as rapidly as some had expected; for example, research and consulting firm Dell'Oro Group recently lowered its open RAN forecast.

Further, Airspan's ambitions in the US cable industry don't seem to have panned out. For example, Comcast recently announced its intent to build a wireless network with equipment from Airspan rival Samsung.

In May, Airspan announced a new CEO – Glenn Laxdal – alongside a new $25 million financing agreement with affiliates of Fortress Investment Group.

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Mike Dano, Editorial Director, 5G & Mobile Strategies, Light Reading | @mikeddano

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About the Author

Mike Dano

Editorial Director, 5G & Mobile Strategies, Light Reading

Mike Dano is Light Reading's Editorial Director, 5G & Mobile Strategies. Mike can be reached at [email protected], @mikeddano or on LinkedIn.

Based in Denver, Mike has covered the wireless industry as a journalist for almost two decades, first at RCR Wireless News and then at FierceWireless and recalls once writing a story about the transition from black and white to color screens on cell phones.

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