March Networks announces more layoffs
OTTAWA, Ontario--Publicly traded IP video manufacturer March Networks announced this week it has 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 just over $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 announcement today of 5,000 workers laid off.
March Networks expects the measures announced this week 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."