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Vonage Reportedly Slashes 200 Jobs
[April 27, 2007]

Vonage Reportedly Slashes 200 Jobs

TMCnet Web Editor
A week that was looking up ended on a sour note for embattled VoIP phone service provider Vonage (News - Alert), as the company said Friday it had cut 200 jobs, or 10% of its workforce, according to a Reuters report quoting a company spokesperson.

The job cuts were part of a company restructuring announced April 12. That day, Vonage’s chief executive Michael Snyder resigned and was replaced by chairman Jeff Citron on an interim basis.
Vonage expects the job cuts to cut its general administrative expenses by $30 million. According to the Reuters report, the company will take a $5 million charge against its second-quarter earnings.
The job cuts are a grim reminder Vonage remains on shaky footing, despite getting a break earlier this week by receiving a stay of a previous court injunction that would have barred the VoIP company from signing up new customers.
After getting the stay, Vonage immediately set out to repair its tarnished image by announcing a public relations campaign trying to convince the public it needs a choice of phone service providers.
Vonage’s fate lies in the U.S. Court of Appeals, which is currently hearing Vonage’s appeal of a March court decision ordering it to pay Verizon (News - Alert) $58 million in damages, along with future royalties, for infringing three of Verizon’s patents.
Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.
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