Tuesday, January 13, 2009

Sonus slices another 4 percent of jobs

By Mass High Tech staff

Sonus Networks Inc., the Westford communications infrastructure equipment maker that announced earlier today an agreement with shareholder Legatum Capital Ltd. to add two new independent board members, has now also announced the cutting of 40 work force positions. The restructuring, which affects about 4 percent of employees worldwide, follows an announcement in December about the company trimming 50 positions.

These work force reductions are an attempt to “ensure the business is the right size and aligned with the company’s strategic direction,” Sonus president and CEO Richard Nottenburg said in a statement.

Today’s job cuts are expected to be completed in the first quarter of 2009 and cost Sonus Networks (Nasdaq: SONS) $750,000 to $850,000 initially, but will ultimately save about $4.5 million to $5 million.

Sonus officials said that while the company is streamlining some positions, it is also hiring in other positions that align with its business plans.

Earlier today, Sonus Networks announced that Dubai-based Legatum Capital, with its 65 million shares and 25 percent ownership of the company, will name two new independent members to the Sonus board of directors.

In the company’s last reported quarter, ending Sept. 30, Sonus reported $61.7 million in revenue, a decrease of more than $26 million over the previous quarter, and a net loss of $19.6 million, a significant decline from the company’s net gain of $126,000 the previous quarter.