BigBand Networks Inc., a leading digital video networking company based in California, announced a plan to cut about 9% of its workforce worldwide, which represents around 40 employees, to reduce its expenses and generate more savings. The layoff is attributed to the decline in revenue during the last quarter of 2010. Based on the preliminary data for the fourth quarter, BigBand would have revenue of about $26 million, with a net loss of approximately $0.09 per share. The company will have its 2010 fourth quarter report ready by February 1.
Amir Bassan-Eskenazi, BigBand President and CEO, explained that the company is currently undergoing a major restructuring plan to balance its expenses against its income. He noted that the slated layoff is necessary to remain competitive in the digital video networking industry. “Our preliminary results for the fourth quarter are in line with the prior outlook we provided, and today’s actions are designed to help us strike the right balance between preserving cash and investing in the future. We are emerging from a challenging year and remain focused on our strategic priorities for the cable and telco markets such as the MSP QAM, SDV, vIP Pass, and advanced advertising.”
The video equipment vendor is expecting to boost its revenue through the slated job cuts and consolidation of some of its facilities. BigBand aims to generate savings of approximately $8 million per year. In 2010, BigBand suffered from faltering sales due to the competition in the industry. The company also underwent a management shakeup last spring to realign its goals to the present market conditions.BigBand Networks to Slash 9% of its Staff by Harrison Barnes