Wednesday, January 7, 2009

Network Equipment Technologies Chops Staff

Fremont-based Network Equipment Technologies, a maker of enterprise VoIP and telecommunications equipment, said late Tuesday that it has made a reduction in force, dropping its employee count by 40 to 255 employees. The firm did not say how many employees were immediately affected by the move, but said it had 295 employees at the end of its second quarter of fiscal 2009. The company announced the cuts in conjunction with a reduced outlook for its fiscal Q3, saying it will see a flat to up to 5% gain in its revenues due to commercial sales drop, both from the economy as well as a stronger dollar. The firm said it will take a $1.5M charge in Q3, and $500,000 in Q4, to write off idle facilities and for severance charges related to the cuts.