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Print Edition StoriesTuesday, November 4, 2008
Egenera to slash 87 jobs
By Mass High Tech Staff
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Egenera Inc., the Marlborough-based data infrastructure virtualization company, told employees yesterday it will cut 87 jobs worldwide, including 30 to 35 positions at its Massachusetts headquarters, a company spokeswoman said today. The move represents a 28 percent cut to Egenera’s worldwide head count of 307 employees.
The company develops both hardware and software for data center virtualization, a technology that stores and manages data more efficiently by allowing servers to perform more than one task at once. With the job cuts, Egenera aims to move from a direct sales to an indirect sales model, said chief marketing officer Christine Crandell. The cuts did not affect employees who manage relationships with the company’s distributors, which include hardware companies such as Dell Inc. Crandell said software development jobs were largely untouched, reflecting the company's strategy to focus more on software.
The layoffs are “across the board,” Crandell said, but primarily affect the company’s sales and marketing divisions, cutting the company’s sales staff by about 40 percent.
Egenera closed its sixth round of venture funding last December in the amount of $26 million, bringing its total venture capitalization since its October 2000 founding to $176 million. Investors have included American Capital, Fujitsu Siemens Computers, Pharos Capital Group LLC, Technology Crossover Ventures (TCV), Mizuho Bank, UBS Capital, Lehman Brothers Venture Capital, Crosslink Capital, Austin Ventures, CSFB Private Equity, Goldman Sachs, Spectrum Equity Investors and Kodiak Venture Partners.
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