March Networks announces layoffs
By L. Samuel Pfeifle
Updated Sun March 1, 2009
OTTOWA, Ontario--Publicly traded IP video manufacturer March Networks announced in January it had implemented a seven-percent reduction in global workforce along with a six percent salary roll-back for all North American executives and staff. This follows another workforce reduction the company announced in November.
However, in the company's most recent reported quarter, March reported slightly higher quarterly revenues of roughly $28 million, what it called “record revenues,” which were helped by the 2008 acquisition of Italian IP video manufacturer Cieffe.
According to a release, the company undertook these most recent measures to mitigate the potential risks associated with growing economic uncertainty. Layoffs have become increasingly common in all industries throughout North America, including, for example, Microsoft's Jan. 22 announcement of 5,000 workers to be laid off over the following 18 months.
March Networks expects the measures announced in January to create an associated reduction in annual operating expenses of approximately $3.2 million.
“The Company continues to remain focused on the execution of its strategic objectives of global growth and improving its operating profitability,” said Peter Strom, March president and chief executive officer, in a statement. “These measures will provide the company with greater flexibility to achieve those objectives within the context of a challenging economic environment.”
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