Friday, December 12, 2008

Sonus Networks to lose 50 workers

By Mass High Tech staff

Westford communications infrastructure vendor Sonus Networks Inc. has announced plans to cut 50 employees in the fourth quarter of fiscal year 2008, about 5 percent of its global workforce, in order to grow company investment opportunities.

The company expects the job cuts to save the company about $5 million to $6 million annually in compensation expenses. Severance for the laid-off employees will cost Sonus (Nasdaq: SONS) between $850,000 and $950,000.

Sonus officials said that despite the layoffs, it is still hiring in certain positions related to geographical business growth. The communications network company also said that further restructuring of the company may be necessary in response to economic conditions.

Earlier this year, Sonus Networks had a string of new customer deals, from the Bahamas Telecommunications Co., Canadian network provider Convergia Networks Inc. and India-based Tata Communications Ltd.

Longtime Sonus CEO Hassan Ahmed, who had led the company for 10 years, announced in May that he was resigning from the position, though continuing as board chairman. Former Motorola Inc. vice president and chief strategy officer Richard Nottenburg has taken over as CEO at Sonus.

In 2007, Sonus reported $97.1 million in revenue and a net profit of $14 million.